Counties Reach Settlement Over Taxes Paid by Online Travel Company

As reported by the Baltimore Sun (limited free views available), Baltimore and Montgomery Counties recently reached a settlement with the online travel retailer Orbitz over a dispute involving the payment of taxes. At the core of the dispute is whether the taxes paid by the online retailer are based on the discounted room rates paid by the booking company or the rate the booking company charges the consumer. Maryland counties, and other governmental entities, have been grappling with this issue for some time. See previous posts on Conduit Street.

From the Baltimore Sun article:

The deal dismisses Orbitz from a sprawling tax case in which the two counties and Baltimore City targeted a long list of online booking companies for more tax revenue in U.S. District Court.

The Orbitz settlement follows Baltimore settlements with Priceline and Expedia in past years, resulting in millions of dollars in new tax revenue for the city, and leaves Travelocity as the only defendant remaining in the case, said Simms, who represents all of the companies.

Travelocity still faces litigation from both Baltimore and Montgomery counties and Baltimore City, Simms said.

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