Mississippi Supreme Court Says Online Travel Companies are Not Subject to Tax on Gross Income of Hotels

In a case involving merchant model transactions where online travel companies (OTCs) act as the merchant of record and facilitate the booking of hotel rooms, the Mississippi Supreme Court reversed lower courts to hold that the OTCs are not hotels as contemplated by Mississippi state and local statutes that levy hotel sales taxes because, among other reasons, they neither furnish nor provide rooms.

Source Deloitte

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