Travel Sites Beat $60M Tax Demand In Calif. Appeals Court

Law360, New York (November 2, 2012, 1:49 PM EDT) -- A California state appeals court on Thursday affirmed a lower court's judgment that Expedia Inc., Priceline.com Inc. and other online travel sites are not liable for nearly $60 million in Santa Monica hotel occupancy taxes because they are just intermediaries between hotels and their customers.

The three-judge appellate panel found that Santa Monica's transient occupancy taxes — a 14 percent tax levied at hotel guests — does not apply to the online travel companies, or OTCs, because they do not themselves own or operate any hotels...
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