Taxing Hotel Room Sales by Online Travel Companies: What Should Be the Appropriate Tax Base?
AbstractThis essay examines the current dispute between state and local governments in the U.S. and online travel companies (OTCs) over the appropriate hotel occupancy tax base for online hotel bookings. It addresses the question of what should be the appropriate tax base in designing hotel occupancy tax statutes. It argues that the appropriate tax base should be the full rental prices of the hotel rooms paid by consumers inclusive of online travel company markups and service fees and not the discounted net rates paid by the OTCs to their hotel suppliers.
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Bibliographic InfoPaper provided by University of Hawaii Economic Research Organization, University of Hawaii at Manoa in its series Working Papers with number 2012-5R.
Length: 36 pages
Date of creation: Jul 2012
Date of revision: Aug 2012
Hotel Occupancy Tax; Online Travel Companies; Merchant Model;
Find related papers by JEL classification:
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-09-03 (Accounting & Auditing)
- NEP-ALL-2012-09-03 (All new papers)
- NEP-PBE-2012-09-03 (Public Economics)
- NEP-TUR-2012-09-03 (Tourism Economics)
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