Online travel agencies must now pay higher taxes on room sales in D.C.
Skift Take
Online travel agencies have prevailed in most tax court cases around the country, but should future cases continue to tilt in favor of the state, travel companies will need to find a way to make up for the loss in revenue.
A D.C. Superior Court judge has ruled that online travel firms should pay taxes on the full retail price of hotel rooms that they sell to consumers.
Prices for hotel guests are unaffected by the court ruling. Photo by Rob Shenk.
In a filing released Monday, Judge Craig Iscoe said that the online travel companies, including Expedia, Orbitz, Travelocity and Priceline, must pay a 14.5 percent tax on the full retail price of hotel rooms. The travel companies have been paying taxes on the wholesale price, which is cheaper.
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