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Florida ruling lets OTCs off the hook for lodgings taxes
Travel Tech, the Travel Technology Association, is celebrating a ruling in the First District Court of Appeal in Florida that says online travel companies (OTCs) are not subject to the application of lodgings taxes for services sold online.
Florida municipalities appealed the Leon County Circuit Court decision, which also ruled in favor of OTCs, claiming OTCs should be liable to pay lodgings tax based on amounts received for providing their reservation facilitation services. The court disagreed.
Travel Tech said today the decision rendered continues to follow a clear national trend, where state and federal courts have repeatedly rebuffed efforts by state and local governments to attempt to impose hotel occupancy taxes on OTCs for their services.
"Our members maintain the same ambition now as we did prior to litigation: to successfully encourage travelers and tourists worldwide to discover and experience the state of Florida, which will ultimately drive increased tax revenues to county and state treasuries," said Simon Gros, chairman of Travel Tech.
The basis of the appeal came down to whether or not Florida’s Tourist Development Tax applied to OTCs.
The Court determined that OTCs do not rent or lease hotel rooms, rather they simply provide a service for consumers to compare hotels and rates, and ultimately book a reservation at a chosen hotel.
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