New York cannot tax Expedia, Priceline fees

Appeals court shuts door on city’s attempt to tax hotel-booking websites

Much like the City of Chicago’s ill-fated attempt to rake in tax dollars from online ticket resellers, an appeals court yesterday struck a similar blow to New York City’s plan to increase its revenues by taxing reseller websites.

The Appellate Division, First Department reversed a trial court decision and struck down New York’s Local Law 43, which leveled a 6 percent occupancy tax on hotel-booking websites, including Expedia, Orbitz, Priceline and The court declared the law unconstitutional, saying the city overstepped its bounds in extending the tax to “online travel intermediaries.”

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