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Anne Gannon,Tax Collector |
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Jennifer Mahoney, Strategic Communication Enthusiast |
July 30, 2009
WEST PALM BEACH - Today, Tax Collector Anne Gannon filed suit against Online Travel Companies (“OTCs”) that book Palm Beach County hotel rooms and do not pay Tourist Development taxes (bed). The taxes are authorized pursuant to Section 125.0104, Florida Statutes which is the tourist development tax imposed by counties.
Pursuant to Palm Beach County Code Section 17-114(g) the County has delegated to the Tax Collector, authority to determine the amount of the tax, penalties, and interest to be paid by each dealer and to enforce the payment of such tax, penalties, and interest. The taxes imposed are considered a lien on the property pursuant to Section 212.03, Florida Statutes.
The OTCs offer hotel accommodations and other travel services via the Internet. The OTCs purchase or contract for the right to purchase hotel rooms at a reduced or wholesale rate. They then sell the contracted rooms via the Internet at a retail rate to the end-use consumer. The OTCs such as Expedia, Orbitz, Priceline, Travelocity, Hotels.com, etc., do not remit the Tourist Development Tax or Sales Tax. Additionally, the OTCs have never registered as dealers as required by law for each business that engages in a taxable sales tax privilege such as the privilege of renting or granting a license to use hotel accommodations. So, the hotel pays Tourist Development Tax and Sales Tax on the wholesale rate, and the difference between the retail rate and the wholesale rate that was collected by the OTC, is never paid to the proper authority.
Information furnished by the Florida Revenue Estimating Conference concluded the tax differential from fiscal year 2000 to date was $190 million for sales tax due to the State and $146.6 million for Tourist Development Tax due to local government.
“We project that the county has missed revenue that instead went to corporate profit,” said Tax Collector Gannon.
About the Palm Beach County Tax Collector:
The Palm Beach County Tax Collector is a constitutional office that collects and distributes over $3 billion annually in taxes and fees. The Tax Collector's Office:
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