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Published on : Thursday, February 14, 2013
The association representing the online travel industry issued the following statement in regards to yesterday’s decision by the Superior Court of the State of California.
“Continuing a state and nationwide trend, the Superior Court of the State of California ruled yesterday that online travel companies (OTCs) are not liable for San Francisco’s Transient Occupancy Tax (TOT). This is now the fourth decision in California to issue judgment in favor of OTCs. Two earlier cases were affirmed by the Court of Appeals, which ruled that our members do not operate hotels and the amounts OTCs charge and retain for their services are not consideration received for occupancy.
We are confident the Court’s well-reasoned decision will be upheld if appealed. Travel Tech is pleased that the Court has joined other courts nationwide, and followed its own rulings as to ordinances in other California cities, by recognizing that OTCs are not liable for taxes due on our services. ”