Priceline, Expedia Duck Hotel Taxes at Mississippi High Court

Priceline.com, Expedia Group Inc., Travelocity.com, and other out-of-state travel booking sites convinced the Mississippi Supreme Court Thursday to overturn a damages award of more than $50 million for unpaid hotel taxes.

The online travel companies aren’t hotels because they don’t furnish rooms and therefore aren’t subject to the 7% tax levied against the gross income of hotels, Justice Robert P. Chamberlin wrote for the 5-3 court. “The nature of the OTCs’ business is to provide an intermediary service between hotels and customers,” the court said.

The companies’ websites allow customers to search for, compare, and reserve accommodations, but ...