The Maryland General Assembly has introduced legislation
that would tax all services performed in the state, including travel agency
services, ASTA said.
The bill was introduced Feb. 20. According to ASTA, it decreases the state’s sales tax
from 6% to 5%, but calls for taxation of all services.
“While we have no idea how this tax would be applied to
travel agencies — on gross receipts, on service or consultation fees, on
commissions, etc. — we know it would increase Maryland agencies’ cost of doing
business by at least 5% overnight and put them at a disadvantage with
competitors in neighboring states,” ASTA said in its Travel Advisor Daily
newsletter.
The Society has created an online portal where Maryland residents opposed to the new tax can get in touch with
legislators.
According to ASTA, Maryland has 276 travel agency retail
locations with 1,139 full-time jobs.
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