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Online Travel Vendors Score Big Win

June 11th, 2015 by Mike Vasilinda

Online vendors of cut rate hotel rooms won a big victory in the state Supreme Court today. Florida counties had challenged the way tourist development taxes are being collected. Expedia has been paying tax on the cut rate it pays hotels, not on the higher inflated price it charges hotel guests. House Finance and Tax Chairman Matt Gaetz says the legislature may get involved next year.

“We work best in government when we have mutual deference among the branches and I think many legislators were uncomfortable about speaking on the issue while it was in the purview of the judicial branch. Now that the judicial branch has spoken dispositively, I think there are some legislators who may want to take a look at it, others may not, and we’ll have to answer that question in the coming session” say Gaetz.

Counties say they are losing millions each year by not collecting the taxes due on the final rental of rooms. The court sided with Expedia and others because lawmakers have failed to clarify the law.

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