Online Travel Companies Win Appeal In Florida Tax Case

TALLAHASSEE (CBSMiami/AP) – Online line travel companies like Expedia and Travelocity have won their appeal as to how much tax they should have to pay on hotel rooms they book in Florida.

The 1st District Court of Appeal panel voted 2-1 on Thursday in Tallahassee to affirm a trial judge's decision in a lawsuit filed by 17 Florida counties.

Tallahassee-based Circuit Judge James Shelfer ruled that the online companies should only pay the tourist development tax on the amount of money they pay to hotels.

The counties had argued the firms also should be taxed on the markup they charge their customers.

The district court majority agreed with Shelfer that state law is unclear on that issue and, therefore, it must be resolved in favor of the taxpayer rather than the government.

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