NewsOK: A judge has ruled against Oklahoma's legal effort to collect back sales taxes from online travel reservation companies that offer discount hotel rooms.
Gov. Brad Henry sued in November, saying Priceline.com, Expedia, Orbitz, Travelocity.com and other companies shorted the state hundreds of millions of dollars. Friday, Oklahoma County District Judge Dan Owens dismissed the lawsuit. Other states, cities and counties have filed similar lawsuits. So far, the online travel industry has won most of the decided cases, an industry spokesman said.
“In Oklahoma and around the country, courts are reaching the same common-sense conclusion in recognizing that online travel companies are not hotels and should not be taxed as if they were,” said Andrew Weinstein of the Interactive Travel Services Association. “We are heartened by the judge's decision, and we hope it allows us to get back to promoting travel and tourism in Oklahoma through cooperation and not litigation.”
The South Carolina Supreme Court in January ordered one online company, Travelscape, to pay that state's tax agency back sales taxes on thousands of hotel room reservations.
Gov. Brad Henry sued in November, saying Priceline.com, Expedia, Orbitz, Travelocity.com and other companies shorted the state hundreds of millions of dollars. Friday, Oklahoma County District Judge Dan Owens dismissed the lawsuit. Other states, cities and counties have filed similar lawsuits. So far, the online travel industry has won most of the decided cases, an industry spokesman said.
“In Oklahoma and around the country, courts are reaching the same common-sense conclusion in recognizing that online travel companies are not hotels and should not be taxed as if they were,” said Andrew Weinstein of the Interactive Travel Services Association. “We are heartened by the judge's decision, and we hope it allows us to get back to promoting travel and tourism in Oklahoma through cooperation and not litigation.”
The South Carolina Supreme Court in January ordered one online company, Travelscape, to pay that state's tax agency back sales taxes on thousands of hotel room reservations.
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