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California Lodging
Industry Association

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Sacramento, CA 95814-3805

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Texas Supreme Court & Hawaii State Court Side with Online Travel Companies
Decision represents another clear victory for online travel companies, and demonstrates futility of similar litigation
Published on 10/29/12


Washington, D.C., October 26, 2012Online travel companies (OTCs) cheered two major legal victories this week, as the Texas Supreme Court and a Hawaii state court affirmed that OTCs are not liable for lodging taxes on their hotel reservation services.

Today, the Texas Supreme Court denied the petition of the City of Houston and the Harris County-Houston Sports Authority to overturn the Texas 14th Court of Appeals case, decided in favor of the OTCs. Earlier this week, a Hawaii state court ruled that service fees charged by OTCs are not subject to state transient accommodations taxes.

"Local officials have been conned into thinking it is good public policy to try and collect illegal taxes. The lawyers promoting these ill-fated cases must have gone to the King George III School of Law," said Simon Gros, Chairman of Travel Tech.


Headquartered in Sacramento, CLIA is a member lodging and hospitality industry association, providing legislative, educational, marketing, and profit-oriented programs for independent lodging owners and operators.


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