Online Travel Firms Owe Hawaii $53.1M
Supreme Court had ruled last March that the firms owed back taxes. Now they know how much.
The Hawaiian vacation tab has arrived for nine online travel companies, and it’s a big one.
The companies, including Travelocity, Expedia, Orbitz and Priceline, owe the state of Hawaii $53.1 million in general excise taxes, penalties and interest, the state Tax Appeal Court ruled.
The Hawaii Supreme Court that the online travel companies owed back taxes聽for selling Hawaii hotel rooms over the Internet. The decision regarding just how much they owe was announced Wednesday by the state Attorney General’s Office.
鈥淥nline travel companies derive substantial profits from the sale of hotel rooms, rental cars and other services in Hawaii,” Attorney General Douglas Chin . “The importance of the Hawaii Supreme Court ruling is the precedent it establishes. People or companies who provide goods and services through the Internet that are used or consumed in Hawaii are subject to Hawaii taxation, despite being domiciled in other states.鈥
last March,聽the Supreme Court said the companies are subject to Hawaii鈥檚 general excise tax, but concluded that they are taxable only on their net receipts from the sale of hotel rooms in Hawaii, not their gross receipts.
“Litigation against the companies for their other State tax obligations for their other business activities in Hawaii during the period 2000 through 2013 is continuing,” Chin said in the release.
