Florida to OTAs - See You in Court

So the simmering battle between the OTAs and the States and other jurisdictions on Taxes just went up a notch.

The State of Florida has now formally filed suit against two specific OTAs - Expedia (who is licensed in Florida) and Orbitz (Both LLC and Inc) which are described as foreign corporations in the suit.

Go here to down load the entire filing. (Courtesy of STR).

This is going to be watched and watched. And then this one could even end up on the high court.

Patience by the States seems to be exhausted. I have a feeling this one is just another battle in a very long war.

Cheers

Expedia to Florida - BITE ME!

So the war between the Hotel Taxing Authorities and the OTAs was opened on another front.

Expedia has decided that after a long relationship of DMO partnerships with the State of Florida - that it will end the relationship if Florida's legislature proceeds with legislation to tax the Hotel sellers for the full selling rate and at source rather than the hotel to collect or the collection of hotel tax on net revenue not the gross selling price.

"There are a lot of places that have beaches. There are a lot of places that can satisfy the leisure traveler," Brent Thompson, vice president of government affairs at Expedia said recently.

I am sure that the elders in the State Legislature in Tallahassee are going to be dictated too....

"I just don't think it's credible to make the argument that changes in tax policy don't create changes in behavior," Thompson said. "Markets react. Tax policies have implications for incentives and how businesses operate."

Now is probably not a good time for anyone to be having this pissing match. So let's hope for everyone's sake they kiss and make up.

Cheers