Brevard County Attorney Says Settlement on Hotel Taxes Near

Online travel agencies have been involved in multiple legal battles with state and local governments across the country over taxes paid on hotel rooms sold through websites like Priceline and Travelocity. Now, it seems at least one of those legal battles is about to be resolved.

Brevard County Attorney Scott Knox says the Florida county is close to a settlement agreement with the nine online companies that had been sued in 2009. The suit alleged that online booking agencies weren’t paying adequate hotel and resort taxes, while the OTAs have maintained that they are only responsible for paying taxes on the wholesale rate paid to the hotels and not the retail price paid by travelers. The difference between taxes calculated on the wholesale rates and retail rates could represent as much as $655,000 owed to Brevard County.

The lawsuit was dismissed by U.S. District Judge Gregory A. Presnell recently when both sides submitted notices of partial settlements. Knox was confident that all companies named in the suit would be paying the county something, “It’s just a matter of negotiating the amount.”

Settlement agreements may resolve the tax issue on Florida’s east coast, but the tax discussion will still continue in the Sunshine State. Florida legislators are currently considering a bill that would make OTAs exempt from paying taxes on the difference between wholesale and retail prices of hotel rooms sold by third-party booking agencies. The bill faces strong opposition from major hotel chains but support from Florida’s theme parks, including Walt Disney World.

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