ASTA Applauds Nebraska’s Decision Regarding Sales Tax on Services

The decision marks a significant win for Nebraska’s travel advisors who had expressed deep concerns about the negative impact the tax could have had on their businesses.

During the four-week special legislative session focused on tax relief, travel advisors across the state grew alarmed at the possibility of a new sales tax being levied on their services as a potential revenue offset, estimated to be $4.4 million in additional taxes across the sector.

As a result, travel advisors statewide sprang into action, flooding legislators with calls and emails urging them to reconsider the tax proposal. The advisors warned that taxing their services could drive their clients to seek advisors in neighboring states where similar services would remain untaxed.

“Removing the sales tax exemption for travel advisors and tour operators would have had serious financial consequences for both travelers and travel advisors, with many clients seeking advisors outside Nebraska to avoid the tax,” said Jessica Klement, VP of Advocacy for the American Society of Travel Advisors. “We are thrilled that the sales tax exemption remains intact, protecting both consumers and travel advisors in Nebraska.”

ASTA quickly mobilized a grassroots advocacy effort in Nebraska that amplified the voices of travel advisors across the state. Their collective outreach to state senators was instrumental in securing this favorable outcome. This victory underscores the importance of active engagement in the legislative process, ensuring that the interests of the travel community are represented and protected.

Though the threat has been averted for now, Nebraska’s travel advisors can continue to focus on what they do best – helping clients create unforgettable travel experiences with their expertise and personalized service.

Nebraska’s governor, however, vowed the issue would come up again next year.