Expedia Bed Tax Litigation Could Bring Legislative Fallout

Law360, New York (January 17, 2014, 5:56 PM ET) -- The outcome of ongoing lawsuits between local governments and online travel companies over state bed taxes could impact future tax policy, analysts say, but the courts might be the governments’ best chance to collect revenue from online businesses.

The tax collector for Palm Beach County, Fla., launched a lawsuit Wednesday against four online travel companies that facilitate the renting of private residences, claiming they failed to register with the state and collect bed taxes on all bookings.

The suit is similar to litigation ongoing throughout the country,...
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