ASTA Advocates Against Proposed Virginia Sales Tax Law

The American Society of Travel Advisors (ASTA) is urging Virginia lawmakers against legislation that would require travel advisors to charge clients a sales tax on their services. 

The proposed law, outlined in HB 900 and HB 978, expands Virginia’s sales and use tax to professional services and could put the state’s travel agencies at a disadvantage. ASTA President and CEO Zane Kerby called the bill “unnecessary and misguided,” especially because the state’s budget is at a surplus. 

“Ninety-five percent of travel agencies are small businesses, and eighty percent are women-owned,” Kerby said. “These proposals would penalize Virginia-based advisors while making it easier for consumers to seek services from advisors in other states.”   

Kerby sent a letter to Virginia legislators on Feb. 5 explaining how the law would impact travel advisors. The letter was submitted for the record ahead of a Feb. 9 hearing of the House Finance Subcommittee #3, and the committee ultimately carried the bill over to the 2027 legislative session. 

ASTA reports that nearly 5,800 travel advisors in Virginia generated $2.2 billion in travel sales in 2024, and that since they operate without geographic boundaries, state tax law could mean incentives for clients to take their business out of state. 

“Travel is not a discretionary luxury,” added Jessica Klement, ASTA’s vice president of advocacy. “Travel advisors provide essential services that support business operations, workforce mobility and emergency travel needs. Taxing these services threatens both small businesses and Virginia’s economic competitiveness.”   

ASTA will continue to advocate against the Virginia state tax bill in anticipation of its return on lawmakers’ desks in 2027. The organization has recently been successful in defending against similar tax bills in the states of Nebraska and Louisiana.