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Published on : Saturday, November 23, 2013
The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the 1.8 million-employee U.S. lodging industry, praises today’s ruling issued by the New York State Court of Appeals in Expedia, Inc. v. City of New York Dept. of Fin.
The ruling overturns an earlier decision by the state Appellate Division that New York City had exceeded its constitutional authority through a 2009 amendment to the city’s hotel occupancy tax targeting online travel company (OTC) fees. Today’s ruling confirms that all fees imposed by the OTCs during the 2009-2010 time frame are subject to the occupancy tax.
“Today’s ruling by the Court of Appeals is very good news for the lodging industry, both in New York and across the country,” said Katherine Lugar, AH&LA president/CEO. “For several years, hoteliers have been working to achieve a level playing field in their tax rates versus those assessed to out-of-state competitors. The majority ruling issued by the justices reinforces our position on this issue and, along with earlier high court decisions in Georgia and South Carolina, demonstrates a growing commitment to providing marketplace tax equality.”