Hotels, online sites fight over travel tax burden

washingtonpost.com

8 October 2013
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When you log on to Orbitz to find that perfect room for your next vacation, you may be thinking about the pool, or the view, or the chance to get away from it all. But the travel site you use and the hotel where you stay are thinking about something else: Who’s responsible for your taxes? Online travel providers and the hotel industry will clash next year over which side is responsible for forwarding taxes to state and local governments, setting up high-stakes battles in state capitals that are increasingly facing the question of how to tax Internet sales. In this case, the consumer’s bottom line may not change, but shifting the tax burden is a threat to travel providers still operating on narrow margins after a recession severely dented their balance sheets.

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