ASTA Mobilizes Around Looming Louisiana Tax Laws

New proposed tax laws in Louisiana just became an urgent point of contention for the American Society of Travel Advisors (ASTA). 

Louisiana Gov. Jeff Landry has set forth a plan to change the state’s tax structure by phasing out state income tax over time and replacing the revenue with sales tax on previously-exempt goods and services – which includes travel agency services. 

Under the new laws, clients would be paying a 4.5% sales tax for trips booked through a travel advisor. Currently, travel agencies are exempt from those sales taxes. ASTA has come out against the proposal, arguing it would lower travel advisors’ overall income. 

“If you are a traveler who uses a travel advisor, you can take those needs anywhere. It is not confined to state lines,” Jessica Klement, VP of advocacy at ASTA, told TMR. “Sure, [the proposed tax laws] may save some of these travel advisors money lowering their income tax, but if their income goes down because now Louisianians are taking their travel advisor needs anywhere else in the country, you’re not actually saving them on income taxes, you’ve just lowered their income.” 

The governor is holding special legislative sessions to address the new tax laws, which could be finalized before Thanksgiving, leaving ASTA a short time frame to have their voices heard on the issue. Klement said Louisiana ASTA members have begun reaching out to their representatives.

In recent years, ASTA’s advocacy has helped prevent the removal of tax exemptions in Nebraska and Kentucky. Klement added that she expects more state-level issues impacting travel advisors to pop up in the new year now that travel is exceeding post-pandemic levels.