Online travel companies ordered to pay state $70M in penalties due to unpaid General Excise Tax

The state will collect a bundle from online travel companies that have not been paying state General Excise Tax.

On Jan. 11, a judge granted summary judgment in favor of the State of Hawaii against online travel companies including Expedia, Hotels.com, Hotwire, Orbitz, Travelocity, and Priceline, ruling that the General Excise Tax applies to the sales of Hawaii hotel rooms by online travel companies.

On Monday, a judge signed off on $70 million in penalties for the companies, in addition to the $158 million in taxes the companies owe.

The state says with the courts ruling, Hawaii should collect $20 million a year in taxes.

See the original article at: KHON2 Developing Stories

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