Hawaii judge orders online booking sites to pay up to $150 million in back taxes
Photo Caption: Hawaii Tax Appeal Court Judge Gary W.B. Chang, ruling against the online travel booking sites. Screenshot from HawaiiNewsNow Video.
Skift Take
This is a significant ruling from a major, high-profile tourist state that will help other cities and states press for more such tax relief in that the ruling came against online booking sites that have fought against these taxes for years.
A state appellate judge has ordered online travel companies including Expedia, Hotels.com, Priceline, Hotwire, Orbitz, and Travelocity to pay the state about $150 million in Hawaii general excise tax obligations dating back to 2000.
Judge Gary W.B. Chang of the Tax Appeal Court granted summary judgment to the state, concluding that the companies must pay Hawaii general excise tax on the sale of Hawaii hotel rooms.
The companies had collectively argued that the tax does not apply to them because their business is conducted outside of Hawa
