Missouri High Court Sides With Travel Firms in Tax Case

7 years 9 months 3 weeks ago Tuesday, June 28 2011 Jun 28, 2011 Tuesday, June 28, 2011 2:59:00 PM CDT June 28, 2011 in News
By: Associated Press

JEFFERSON CITY (AP) - The Missouri Supreme Court has sided with several online travel companies in a dispute over hotel and tourism taxes. St. Louis County and the St. Louis Convention and Visitors Commission sued several companies that facilitate online hotel and
motel bookings.

The companies contract with hotels for discounted prices and then sell rooms to the public for a higher price. St. Louis County and the commission contend the online booking companies should pay the taxes for the price difference. Defendants included Expedia Inc., Priceline.com and Orbitz Inc.

The companies argued the taxes apply to hotel operators and that the higher price they charged was for their reservation services. A unanimous state Supreme Court on Tuesday ruled for the companies, concluding they are not required to pay the taxes.

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