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New York High Court decision is a strike against OTAs

The United States hotel industry is praising a decision of the New York High Court that helps to level out some taxation-related advantages that OTAs held against hoteliers. The court overturned an earlier decision in which it defended the OTA from being targeted by an amendment to New York City’s hotel occupancy tax which targeted online travel agency fees. Therefore, fees incurred are in fact subject to taxation.According to Katherine Lugar, American Hotel and Lodging Association (AH&LA) President & CEO, this decision was an important step to putting hoteliers and OTAs on equal footing: “Hoteliers have been working to achieve a level playing field in their tax rates versus those assessed to out-of-state competitors. The majority ruling issued by the justices reinforces our position on this issue and demonstrates a growing commitment to providing marketplace tax equality”.

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