Travel Sites Lose Hotel Tax Challenge In NY’s Top Court

Law360, New York (November 21, 2013, 1:25 PM EST) -- Expedia Inc. and other online travel agencies suffered a setback Thursday when the New York Court of Appeal ruled that New York City’s tax on online hotel bookings is legal, overturning a lower court’s ruling that the tax was unconstitutional.

Overturning an Appellate Division ruling, a majority of a panel for the state's top court said that the city had the authority, under Local Law 43, to impose its tax on hotel booking fees because those fees are a required charge for visitors to secure their...
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