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This page contains a single entry from the blog posted on February 23, 2012 11:40 AM. The previous post in this blog was A vital public service. The next post in this blog is All aboard for mayhem. Many more can be found on the main index page or by looking through the archives.

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Thursday, February 23, 2012

Portland hotel tax dispute is one of many

The City of Portland is going after the Expedias and Pricelines of the world, seeking to collect some hotel taxes that the online travel companies haven't been paying. The companies say they aren't hotel operators, and so they don't have to pay the tax. There has been a lot of this litigation around the country, apparently with no clear winner. But just the other day, the companies won a similar case in Tennessee.

Comments (4)

Since Portland isn't much of a "destination" city you would think that the Expedia and Priceline's of the world wouldn't be booking all that much travel that included a hotel stay in our beloved and crumbling burg.

My question to the idiots at City Hall is how much cash do you really think you're going to get out of this? Enough to cover the salaries of the city lawyers handling this joke of case? Maybe enough to pay for one of Admiral Randy's Loos??

The court says the city is only entitled to tax what the OTC pays, not what the person staying in the rooms pays; so Portland still collects room taxes, but less than if a person books directly with the hotel.

What I am wondering is if in the past when I booked through an OTC (like Delta Airlines and Orbitz), did they levy room taxes on what I paid them or what they paid the hotels? Worth checking next time.

I know in Las Vegas a lot of hotels are charging "resort fees" of $25 a night plus in part because the lodging tax doesn't apply to such room fees.

I read once that part of the issue is that the booking services collect room taxes on what the customer pays, but remit room taxes only on what they pay the hotel operator, in effect pocketing part of what they're telling the customer is the room tax.

The quickest way to reduce jobs in the hotel industry would be to retroactively reduce the benefits that a hotel gets by brokering online. A "Stay alive" occupancy rate allows a hotel/motel to keep a core staff working, and possibly make a profit when and if more customers show up. Portland bureaucrats would rather give subsidies to new hotels, rather than just staying out of the way.




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