No Hotel Tax On Travel Site Commissions, Calif. Panel Says

Law360, Los Angeles (March 5, 2014, 10:40 PM EST) -- Expedia Inc. and other online travel companies only have to pay San Diego occupancy taxes on money it actually sends to hotels, a California appeals panel decided Wednesday, ruling that the city’s tax law does not include the travel companies’ commissions.

Justice Victoria Chavez affirmed, in an unpublished opinion, a lower court decision and found that San Diego’s 10 percent tax only applied to rent charged by an “operator” such as a hotel.

As it held in past tax challenges brought by Anaheim and Santa Monica,...
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