Taxing Hotel Room Sales by Online Travel Companies: What Should Be the Appropriate Tax Base?
This 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.
|Date of creation:||Jul 2012|
|Date of revision:||Aug 2012|
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- Larry Dwyer & Peter Forsyth (ed.), 2006. "International Handbook on the Economics of Tourism," Books, Edward Elgar Publishing, number 2827, July.
- Bonham, Carl & Fujii, Edwin & Im, Eric & Mak, James, 1992.
"The Impact of the Hotel Room Tax: An Interrupted Time Series Approach,"
National Tax Journal,
National Tax Association, vol. 45(4), pages 433-441, December.
- Carl Bonham & Edwin Fujii & Eric Im & James Mak, 1991. "The Impact of the Hotel Room Tax: An Interrupted Time Series Approach," Working Papers 199124, University of Hawaii at Manoa, Department of Economics.
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