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Monday, January 18, 2016

Ind. Gov't. - Bill may impact pending decision re sales tax on online travel sites

On Jan. 17, 2014, in the case of Orbitz, LLC v. Indiana Dep't of State Revenue (49T10-0903-TA-10), the Indiana Tax Court held a hearing on the parties' motions for summary judgment on whether online travel sites are subject to sales tax and on what basis.

(Earlier, in 2013, in the same case, the Court had ruled affirmatively on "Orbitz, LLC’s request to have certain documents within the judicial record placed under seal so they cannot be accessed by the general public.")

According to the docket in the Orbitz case, there has been no Tax Court decision yet from the Jan. 17, 2014 hearing.

Senate Bill 309, concerning state and local taxation, which is to be heard in the Committee on Tax & Fiscal Policy tomorrow, Jan. 19, 2016, appears to deal with this pending issue. From the fiscal note:

Sales Tax (Taxation of Accommodations): The bill specifies tax collection requirements for a facilitator who markets lodging accommodations located in Indiana through the Internet.

It defines "accommodation" as any hotel, motel, inn, tourist camp, tourist cabin, house, or any other place in which rooms or lodgings are furnished for consideration.

It defines "facilitator" as a person who: (1) contracts with a retail provider of an accommodation to market the accommodation online; and (2) accepts payment from the consumer for the accommodation.

The bill provides that a facilitator who receives payment for an accommodation must collect and remit: (1) the state gross retail or use tax; and (2) any innkeeper's tax due. The bill specifies that the calculation of the tax must be based on the total amount paid by the consumer to a facilitator, including any charge or fee of the facilitator.

See SECTION 15 of the bill, beginning on p. 16.

Posted by Marcia Oddi on January 18, 2016 01:07 PM
Posted to Ind. Tax Ct. Decisions | Indiana Courts | Indiana Government