Online travel cites won a victory at the New Hampshire State Supreme Court this week. New Hampshire had sued them in search of taxes claiming the cites were functioning as ‘operators’ and subject to the State’s Rooms and Meals Tax. The court said no.
The state sued Expedia, Priceline, Orbitz and Travelocity in 2013 in hopes of recovering hundreds of thousands of dollars it claims it is owed because it collects taxes only on the lower, wholesale rate the companies pay hotels instead of the higher, retail price they charge consumers. The state argued that is unfair to both consumers, who aren’t given a detailed breakdown on the “taxes and fees” they pay, and to local businesses that pay the tax on the full retail rate.
The State Supreme Court agreed with a lower court ruling that the websites do not manage or control hotels.
“Nor do they own, staff or maintain the hotels,” the court wrote. “They have no involvement in the day-to-day management or running of the hotels.”
They are not in the hotel business. Therefore the tax does not apply. An added cost that would be passed on to consumers on top of the tax they pay when choose to “Live Free” in the Granite State for a week or just a weekend.
