Plan to tax online hotel bills stalls in Ohio

COLUMBUS, Ohio (AP) — A proposal to tax the booking markups of online travel companies — including Expedia and Travelocity — has stalled at the Ohio Statehouse.

The state Senate stripped the House-passed measure from the $61.7 billion, two-year budget passed Thursday. It proposed imposing Ohio’s lodging tax on fees charged by the sites.

The Ohio Hotel & Lodging Association argues online companies should pay taxes not only on the wholesale room rate they receive from the hotel but also on the higher retail rate they charge customers.

The online companies contend the markup covers their services, not hotel rent, so shouldn’t be taxed.

A 2011 analysis estimated losses to state and local governments from not taxing the markups at $275 million to $400 million annually.

The measure could resurface in budget compromise talks.

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s