Mississippi Supreme Court Rules Online Travel Companies Not Liable for Hotel Tax

• Mississippi Supreme Court rules in favor of Priceline.com and other online travel companies (OTCs) in a tax liability case.
• Chancery court had previously ruled that OTCs were liable for over $10 million in taxes and $50 million in penalties and interest.
• State argued that OTCs should be subject to a 7% tax as they acted as the primary contact point for consumers booking hotel rooms.
• OTCs argued that they should not be assessed for the tax as they were marketplace facilitators, not providers of lodging.
• Court considered the definition of “hotel” and found that OTCs did not meet the definition.
• Court reversed the chancery court’s decision and relieved OTCs of tax liability.
• Case emphasizes the importance of clearly defining a business and understanding local tax laws.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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