expedia1Expedia and other big online travel agencies may be looking at higher tax expenses thanks to a recent push by state legislators.

Bloomberg reports that The National Conference of State Legislatures is recommending that states consider requiring these online companies to pay occupancy taxes based on full rental prices paid by customers rather than the rate that Expedia and others have negotiated with the hotels.

States like New York and North Carolina have already passed laws that require payment on the full prices and agree that the online travel agencies put local hotels at a disadvantage with their current model.

However, companies like Expedia, Priceline and Orbitz argue that they should not pay extra taxes because the difference between the full price and the wholesale price they pay hotels to list available rooms can be considered a service fee for facilitating the transactions, they say.

Shares of Expedia took a dive late last month following the Bellevue company’s latest earnings announcement which showed a 27 percent decline in adjusted net income.

Previously on GeekWire: Rich Barton, Spencer Rascoff and others bankroll online vacation rental startup … Florida court hands victory to Expedia, other online travel companies over lodging tax 

Comments

  • Blakejone

    Yes that’s good idea to enjoy travel anywhere in all around
    the world. To get any tour mostly tourists
    face troubles in transpirations and relaxing living facilities. Through this
    online service we enjoy our trip any corner of the earth and get all big to
    little details at home. That’s really impressive faculty for all travelling
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  • http://www.getbustours.com/ Kaitlin

    Yes, i agree Blakejone with you through these online sites we can know about many things about travel without wasting our time and money. These companies also provides information about different places that are best to visit. These
    online travel companies are no strangers to the corridors of power in state capitals, having lobbied for years for legislation to exempt their “facilitation” fees from occupancy taxes.

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