Online Travel Companies Must Collect Colorado Lodging Taxes

April 25, 2017, 9:39 PM UTC

Expedia Inc., Orbitz LLC, Priceline.com Inc. and Travelocity.com LLC could be stung for at least $7.5 million of lodging taxes and penalties owed to Denver under a ruling by the Colorado Supreme Court (Denver v. Expedia Inc., 2017 BL 133139, Colo., No. 2017 CO 32, 4/24/17).

A divided Colorado high court ruled April 24 the online travel companies (OTCs) have an obligation to collect and remit taxes calculated against the higher retail rate paid by consumers for hotel rooms, rather than the discounted wholesale rate negotiated between OTCs and hotels. The OTCs had asserted, as they ...

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