Online travel agencies have faced legal troubles in the past year from states that claim that OTAs aren’t paying the necessary taxes. Now Florida, the state that was the first to file suit against sites like Expedia and Orbitz in 2009, is considering legislation that could make those extra taxes disappear.

The bill currently under consideration would make online booking agencies responsible only for taxes on the wholesale room rates that they pay to hotels, rather than the retail room rate that they are paid by customers. This is how OTAs have been paying taxes, but the bill would make the method law and settle any ongoing legal discussions about unpaid or future additional taxes.

If the bill passes, Florida may lose about $20 million per year in revenue from the additional taxes.

That American Hotel & Lodging Association, along with several major hotel chains, have come out in opposition of the bill, saying that the apparent double standard would give online travel agencies an unfair advantage with consumers. Best Western, Choice Hotels, Hilton Worldwide, InterContinental Hotels Group, Marriott International and Starwood Hotels & Resorts are among the chains that sent a letter opposing the bill to recently elected Florida Governor Rick Scott.

On the other side of the debate, Walt Disney World and Universal Studios, the two major theme parks in Florida, support the proposed bill. The parks argue that higher taxes for online booking companies would ultimately drive up the price of Florida vacations, which would drive away visitors to the tourism-dependent state.

If the bill fails, Walt Disney World and Universal Studios could face the same legal troubles that have plagued OTAs in the past. Both theme parks sell park tickets and hotel rooms at a wholesale price to their own travel agencies. Those individual components are then bundled into vacation packages and sold at an increased rate. Currently, the theme parks pay taxes on the reduced wholesale price.

Photo credit: Britt Reints