Florida's Brevard County split on OTAs and room tax

16 Jan, 2012

Lawmakers in Florida's Brevard County are once again proposing legislation that would give online travel agents a break when it comes to paying room taxes on hotel rooms, according to Florida Today. The county's 5-percent tourism tax generates $7-8 million annually. Last year the county reached a settlement with OTAs following a lawsuit in which OTAs did not admit they owed more taxes, and the state agreed not to sue for three years.

This year, Rep. John Tobia is backing legislation that will again allow OTAs to pay taxes on the wholesale rate of the room, not on the total marked-up price they sell it for.

The issue has divided tourism interests in the county, according to the story. The opposition includes hoteliers, local municipalities and hotel associations, who claim "online travel sites are getting an unfair tax advantage that, according to one state estimate, is as much as $30 million a year in tourist development and sales taxes."

Florida GOP legislators and the Florida Chamber of Commerce say the current system is not an unfair advantage for OTAs.

“This will help put folks in Florida hotels,” Tobia told Florida Today.

Topic : Occupancy tax, Hotel taxes, OTA
External Source : Florida Today

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