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Victory for Online Travel

Febuary 2, 2009
The case of Anaheim, California, vs.  Priceline.com, Expedia, Trip Network, Orbitz LLC, Travelocity.com, Hotwire and Hotels.com in regards to transient occupancy taxes was overturned yesterday in a Los Angeles court according to Reueters. The ruling was in favor of the online travel agencies who argued that they are not responsible for the 15-percent hotel occupancy taxes because they do not operate hotels. The February 2009 ruling mandated that the OTAs were subject to pay additional TOT, interest and penalties totaling approximately $21.3 million. The new ruling founds that the OTAs model of paying TOTs is accurate. reuters.com