A day after stalling in a Senate committee, a bill that would clarify the tax liabilities for hotel rooms booked online was unanimously approved in a House committee after it was amended to allow two current law suits to continue.
Counties have complained that when people book rooms through Expedia or Orbitz or other online travel bookers, the tax isn’t remitted on the full price of the room but rather on a discounted rate charged to the online travel company.
Some counties have sued over the issue, as has Attorney General Bill McCollum, but the counties are seeking legislation that would clarify the higher tax is due.
The House Finance and Tax Council on Thursday, however, passed a bill (HB 1241) that clarifies that going forward only the tax on the lower amount is due, a win for the online travel companies.
The lawsuits can proceed, however, under the amended bill. Its fate in the Senate looks uncertain though. It had to be postponed earlier this week in the Senate Commerce Committee after an amendment failed on a 4-4 vote making it appear there weren’t the votes to pass the bill.
Source: News Service Florida
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