Florida Circuit Court Sides With Online Travel Companies
Decision represents additional victory for companies, questions futility of
TALLAHASSEE, Fla., Feb. 28, 2013
TALLAHASSEE, Fla., Feb. 28, 2013 /PRNewswire/ -- The First District Court of
Appeal in Florida ruled decisively in favor of online travel companies (OTCs),
affirming once again that OTCs are not subject to the application of lodgings
taxes to their services. Florida municipalities appealed the Leon County
Circuit Court decision, which also ruled in favor of OTCs, claiming OTCs
should be liable to pay lodgings tax based on amounts received for providing
their reservation facilitation services. The court disagreed. The decision
rendered today continues to follow a clear national trend, where state and
federal courts have repeatedly rebuffed efforts by state and local governments
to attempt to impose hotel occupancy taxes on OTCs for their services.
"Our members maintain the same ambition now as we did prior to litigation: to
successfully encourage travelers and tourists worldwide to discover and
experience the state of Florida, which will ultimately drive increased tax
revenues to county and state treasuries," said Simon Gros, chairman of Travel
Tech: The Travel Technology Association.
The crux of the appeal came down to whether or not Florida's Tourist
Development Tax applied to OTCs. The Court determined that OTCs do not rent
or lease hotel rooms, rather they simply provide a service for consumers to
compare hotels, rates and ultimately book a reservation at a chosen hotel.
Gros continued, "We sincerely hope that these claims will finally be put to
rest, so that we can get back into the business of putting heads in beds, and
showcasing Florida as a tourist destination on a global stage."
About Travel Tech
The Travel Technology Association, or Travel Tech, is the association for
online travel companies (OTCs) and global distribution systems (GDSs), and is
dedicated to connecting consumers and travel providers, eliminating barriers
to travel and protecting consumers. Travel Tech's members include: Amadeus,
Expedia, Orbitz Worldwide, Priceline, Travelocity, Travelport and Vegas.com.
SOURCE The Travel Technology Association
Contact: Robin Reck, Director of Communications, +1-202-870-8924,
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