OTAs win court battle over Florida hotel taxes
The online travel industry has welcomed the decision of the Florida Supreme Court to reject claims online travel agencies should pay tourism taxes on the fees they charge hoteliers.
The state’s highest court sided with the OTAs in a 5-2 decision and said the tourism development tax that Florida counties receive should only relate to the amount paid for a hotel stay and not including fees or commission charged by a middleman.
"It is irrelevant to the taxation issue at hand which actors are involved and what roles they play in transactions for facilitating hotel room reservations," the court said in its ruling.
"We conclude that the statute concerns only the amount of funds a hotel requires for a customer to occupy the hotel room it rents on a transient basis."
Trade group The Travel Technology Association, which represents the interests of major online travel companies, lauded the ruling.
"We applaud today’s confirmation by the Florida Supreme Court that Florida hotel taxes do not apply to online travel agents and the amount they charge for their services," said TTA president president Steve Shur.
"As the state Supreme Court, and dozens of U.S. courts before it have recognized, online travel companies are not hotels, and therefore should not be paying hotel taxes," Shur added.
A legal battle had been brewing for more than a decade as local lawmakers argued tax should be paid based on the full amount of a hotel stay, include OTA commissions.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive