Action Alert...Weigh in on Important Hospitality & Tourism Issues
Share Your Thoughts With Congress and Virginia Legislators
Below are measures that VRLTA is following, including federal-level legislation that would increase the minimum wage and eliminate the tipped wage. Please make your voice hear as soon as possible, if you haven't already. Thank you!
Federal Action Alert...Immediate Action Needed
OPPOSE FEDERAL RAISE THE WAGE ACT

The National Restaurant Association just completed a national survey of their membership, asking independents and franchises what impact the “Raise the Wage Act” would have on their recovery efforts and plans for 2021. The results are striking and Congress needs to hear that now is not the time to attach this to the stimulus bill being considered right now. 
 
Restaurant owners told the NRA that if “Raise the Wage” passes Congress later this month:
  • 82% say it will have a negative impact on their ability to recover this year. 
  • 98% will have to raise menu prices.
  • 84% will likely cut jobs and employee hours from normal levels.
  • 65% will add equipment or technology that reduces the need for employees in their restaurant.
  • See the Impact Survey Data here.

These results make one point crystal clear – after seeing over 110,000 restaurants close and over 2.5 million jobs lost nationwide, increasing labor costs is going to make it more likely that more operators close their doors and lay off their staff. Tipped servers will lose with the end of a system that allows them to make $19-$25 an hour in tips under the current tip credit system. An infographic with the survey findings is here. See the letter the NRA sent to Congressional leadership here.
 
Congress is looking to fast-track this bill in a matter of weeks. They need to hear from you to put a local connection to these national results. Please take action at the link below. Your answers to the questions asked will personalize your message to Congress.

VRLTA opposes this legislation to raise the minimum wage and eliminate the tipped wage. We urge our members and others in hospitality and tourism to do the same. Please complete this action alert today.
Virginia Action Alerts
OPPOSE PPP LOAN BILL THAT WOULD INCREASE TAXES

VRLTA is asking you to take a moment to contact your legislators regarding HB1935, which would “conform” the Commonwealth’s tax system with the federal tax code but exclude state tax deductions for PPP loans. This bill, along with SB1146, is a major setback to Virginia’s small businesses, who are counting on the tax-deductible PPP loans to keep their doors open. Recently, the Senate has proposed deductibility of $50,000 and the House is considering deductibility of $25,000, which are both inadequate considering how devastating the impact of the pandemic has been on hospitality. Taxing PPP expenses would be the last straw for many businesses, leading to additional layoffs and closures. It would cost restaurants, hotels, campgrounds, attractions, and other small businesses almost $500 million in additional tax bills. This goes against the original intent of the PPP loans, which was to provide relief to businesses and keep them afloat during the government-mandated shutdown. 
 
VRLTA opposes this legislation unless it allows for the deductibility of PPP loans and expenses. We urge our members and others in hospitality and tourism to do the same. Please complete this action alert today.
SUPPORT BILL TO CLOSE ONLINE TRAVEL AGENCY LOOPHOLE

Current Virginia law gives online travel agencies (OTAs) like Expedia or Travelocity an unintended discount in lodging and occupancy taxes as compared to traditional hotels in the Commonwealth. This loophole results in consumers paying taxes on the retail room rate, however the online travel agencies only remit based on their wholesale price. 
Online travel agencies get to pocket the difference — a raw deal for taxpayers, our hospitality industry which must collect and remit at the retail room rate, and local jurisdictions who count on those tax dollars paid by hotel guests to make it all the way to the programs they are intended to support. As the law currently stands, this practice is legal, and Virginia cannot require online travel agencies to pay their fair share in taxes. However, a bill, SB1398, is being considered in the Virginia legislature right now that would clarify Commonwealth law so that hotels and online travel agencies providing identical services are taxed equally.

VRLTA supports this legislation to level the playing field for hotels. We urge our members and others in hospitality and tourism to do the same. Please complete this action alert today.