In re Tax Appeal of Travelocity.com, L.P.

The State Director of Taxation retroactively assessed ten online travel companies for unpaid general excise tax (GET) and transient accommodations tax (TAT) for periods beginning between 1999 and 2001 and continuing until 2011. The Director also assessed penalties. The online travel companies appealed the assessments. The tax court (1) ruled in favor of the Director with regard to the GET assessments; but (2) ruled in favor of the online travel companies with regard to the TAT assessments. The Supreme Court affirmed in part and vacated in part the judgment in regard to the GET assessments and penalties and affirmed in regard to the TAT assessments, holding (1) the GET apportioning provision was misapplied in this case; and (2) the TAT was not applicable to the online travel companies in the assessed transactions. Remanded. View "In re Tax Appeal of Travelocity.com, L.P." on Justia Law