Online Hotel Rentals
June 16th, 2011 by Mike VasilindaThe governor and Cabinet are asking the Department of revenue to come up with a plan to decide if online travel companies are paying their fair share of taxes to the state. Currently, companies such as Expedia buy hotel rooms at a discount rate, then mark them up significantly, but only pay the tax on what they paid for the room, not on what it sold for. Attorney General Pam Bondi asked for the plan.
“You know, an experienced tax lawyer, the executive director of the Department of Revenue, said it was ambiguous right now because we are relying on a statute from 1949. So that’s why we need to look at this and come to a determination on it based on hearing all sides,” Bondi said.
The online companies are being sued by several counties over the lack of payment. Internal documents leaked from lawyers for several on line retailers suggest the companies could be liable for paying taxes on the entire transaction.
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