Texas Supreme Court, Hawaii Court Side with OTCs on Tax Issue
By Mimi Kmet
October 28, 2012 8:53 PM
The Texas Supreme Court and a Hawaii state court have ruled that online travel companies (OTCs), including Expedia.com and Priceline.com, are not liable for lodging taxes on their hotel reservation services, according to an annoumcement from the Travel and Technology Association (Travel Tech).
The Texas Supreme Court denied the petition of the City of Houston and the Harris County-Houston Sports Authority to overturn the Texas 14th Court of Appeals case, decided in favor of the OTCs. And a Hawaii state court ruled that service fees charged by OTCs are not subject to state transient accommodations taxes.