Tax & Accounting Blog

D.C. Files Suit Against On-Line Travel Companies

Indirect Tax, Sales and Use Tax March 24, 2011

On Tuesday attorneys for the District of Columbia filed a lawsuit in Superior Court against multiple online travel companies including Expedia, Orbitz, Travelocity and Priceline, alleging the companies are not paying D.C. the millions of dollars per year in sales tax they believe that they owe and that it is time to pay up. This is just the latest in a rash of similar lawsuits that have been filed around the country. Lawsuits in other jurisdictions have met with mixed results. Most recently a California Superior Court held that online travel companies (OTCs) are not subject to the transient occupancy tax (TOT) imposed by the City of Santa Monica.