Counties, Including Escambia, To Appeal Online Travel Ruling

April 25, 2012

A group of counties — including Escambia — will appeal a Leon County circuit judge’s ruling that online travel companies do not have to pay disputed hotel taxes, an attorney for the counties said Tuesday.

Circuit Judge James Shelfer sided last week with online travel companies, such as Orbitz and Expedia, in a long-running legal battle with 17 counties about the payment of tourist-development taxes.

Roberto Martinez, an attorney for the counties, said Tuesday the case is “far from over” and that the counties definitely will appeal. “We respect the court’s ruling, but we’re disappointed, and we will file a notice of appeal to the 1st District Court of Appeal,” he said.

Shelfer made the oral ruling during a hearing Thursday and still must sign a written order. A similar case, filed by Broward County, also is pending in Leon County circuit court, though it is being heard by a different judge.

Online-travel companies, which serve as middlemen between hotels and travelers, charge customers for room rentals and fees related to providing the service. The legal fight centers on whether tourist-development taxes apply to the total cost that customers pay or only to the portion that goes for room rentals. While counties say the total cost should be taxed, the industry says taxing its fees would amount to a services tax.

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Written by William Reynolds · Filed Under News