Columbia wins OTC tax tussle

The USA's Washington DC Court of Appeals has ruled on line travel companies (OTCs) must pay more than US$60 million in unpaid sales taxes and interest to the District of Columbia.

Until now, OTCs have paid tax only on the amount they passed through to their hotel principals and not on the gross amount charged to the hotel guest.

"We are thrilled that OTAs will be required to pay their fair share of taxes in the District of Columbia," said Solomon Keene, Hotel Association of Washington, DC.

"This decision reinforces our position that these taxes are owed to District taxpayers."

Columbia wins OTC tax tussle

The USA's Washington DC Court of Appeals has ruled on line travel companies (OTCs) must pay more than US$60 million in unpaid sales taxes and interest to the District of Columbia.

Until now, OTCs have paid tax only on the amount they passed through to their hotel principals and not on the gross amount charged to the hotel guest.

"We are thrilled that OTAs will be required to pay their fair share of taxes in the District of Columbia," said Solomon Keene, Hotel Association of Washington, DC.

"This decision reinforces our position that these taxes are owed to District taxpayers."