Wednesday, January 20, 2010

OTAs Win on Taxes in Texas

A trial court in Houston today dismissed a case brought by the City of Houston against the major online travel agencies for nonpayment of occupancy taxes. The court issued a summary judgement indicating that the judge found the evidence supporting the plaintiffs' case insufficient to even proceed to trial.

This ruling is a big win for the OTAs as the court looked at the same language in which a San Antonio jury concluded that the OTAs (somehow) control hotels. We took a look at this ruling back in November and concluded that ruling was a draw. Based on today's ruling, we are going to give it to the OTAs, minus legal fees and the overall distraction factor, of course. San Antonio, see you on appeal as they say...

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