The state of Hawaii has filed a lawsuit in state Tax Court claiming Expedia, Travelocity, Orbitz, Priceline.com and other online travel companies owe more than $500 million in state hotel room and general excise taxes.
Hawaii News Now reports that the state Attorney General’s office said in court documents that the online travel companies had collected tens of millions of dollars in Hawaii state taxes for more than 10 years, but never turned the money over to the state.
Hawaii News Now reports that Expedia Inc. (Nasdaq: EXPE) holds the largest state tax debt at $302 million, followed by Travelocity at $72 million, Orbitz Worldwide Inc. (NYSE: OWW) with $48 million and Priceline.com Inc. (Nasdaq: PCLN) at $30 million.
Hawaii News Now reports the president of the Interactive Travel Service Association, Joe Rubin, says online travel companies aren’t subject to the state hotel room tax because they don’t own or operate hotels.
Edited by : William Hurley