ANNAPOLIS, Md. (AP) — The Maryland General Assembly has passed a bill to make third-party travel websites pay all of the state’s sales tax, because supporters say they currently are able to avoid paying the full amount.
The House of Delegates voted 84-56 on Wednesday for a Senate bill, sending it to Republican Gov. Larry Hogan.
Opponents of the bill say it amounts to a new tax on travel websites. Steve Shur, president of the Travel Technology Association, says the measure will increase taxes on more than 200 of Maryland’s small businesses, as well as travelers who use online travel agents.
But supporters say the measure simply closes a loophole. They say the measure requires online travel companies to remit the same amount of sales tax collected from customers as Maryland’s hotels do.
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9 comments:
I am sicksnd tired of our representativebeing fixated with finding new ways to get into our pockets. I dont care what they want to tax. They have enough of our G D money already. They need to learn how to cut spending. I am for riots and lynchings at this point. Screw them. Come and get me NSA.
This new bill will definitely affect travel agencies (both local and country wide). This ill-concieved bill will impose Maryland's six percent sales tax on to agents fees that they charge to survive (which by the way are already subject to federal and state income taxes, which will then result in triple taxation.) I thought Hogan was for the small business person and NO TAXES! This I feel will affect the way travel agents do business and to book away from Maryland hotels. I for one would do the same rather than pay for taxes on a service that I provide when I already pay federal and state taxes.
How is one to figure out the Maryland tax on a package sold to a Delaware resident by a Florida Agent that includes a Maryland air travel connecting with a Missouri airline to a Colorado hotel stay that includes ski tickets from an Idaho based company?
How much is that?
No problem. I will just book my travel through where my wife works in De. These legislators seem to forget just how small Maryland is and how easy it is to take our business elsewhere to a neighboring state!
These travel company's are already collecting the taxes from the customer...and putting it in their pockets.
Closing this loophole will only cause the travel company's to remit the taxes they already collect. Yes it will reduce their profit - yes, they may increase their fees to you as a result - but you'll be able to clearly see that increase!
736AM As the owner of a travel agency, I wish I was able to put "money in my pocket" but I don't. You are just like many of the thousands who are misinformed what this bill really is, Yes, the big companies like Expedia, Orbitz, Priceline were not paying their fair share but we are talking about a small brick and mortar business who pays their fair share of state and federal taxes and to survive, agents had to start charging "service fees" just like your Doctor charges for his service, your barber, your hairdresser, your accountant, etc etc etc. Travel Agents pay state and federal taxes on those service fees (income) but now the state wants to collect six percent of those fees - Capich??? Its called triple taxation! Its also called booking away from Maryland hotels in the future!
This is a no brainer. I am against any new taxes, but that is not what this is. They sell hotel rooms in a retail venue and they should pay the same tax that anyone else pays. They buy at wholesale, sell at retail and as such should pay the tax on the price they sell at....just like everyone else. If homedepot buys a hammer for $1 wholesale, and sells it to the customer for $5, should they only pay sales tax on the $1 wholesale price? Of course not. They should charge the customer sales tax on the $5 retail price of the hammer, and remit the same to the state. The online travel agencies have tried to spin this so they can keep the loophole open.
I guess "your guy" has no problem with new taxes, fees, fines, surcharges, and levies.
Its a shell game meant to mollify the masses.
Same old story and same old song and dance.
Keep cheering!
947AM and others - you are wrong as even the people who wrote this bill were not aware of what was in the bill and the correct interpretation and that was discovered after talking to one of the co-sponsors of the bill. They acknowledged that they did not realize it would affect travel agents and it's intent was for the online agencies like Expedia, etc.
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