Expedia, Orbitz Avoid Louisiana, Local Sales Tax on Hotel Rooms

Expedia Inc., Orbitz LLC, Hotels.com LP, and other online travel sites don’t have to remit Louisiana state and local sales and use taxes on rooms that customers book through their platforms, a divided state appeals court ruled.

The sites aren’t hotels or dealers engaged in the business of selling and furnishing rooms, but instead they facilitate transactions between hotels and customers, the Louisiana Court of Appeal ruled in a 2-1 opinion.

The majority also rejected arguments by the Louisiana Department of Revenue, New Orleans, and other localities that the companies owe sales tax on the fee they charged ...