Booking.com Unable to Revive Suit Challenging Hawaii Use Tax Law

Booking.com failed to convince a Hawaii appeals court Wednesday to revive its lawsuit over a state use and excise tax law under which the travel website was assessed nearly $20 million.

Booking.com BV sued for a declaration that the statute is invalid because it imposes a discriminatory tax on online merchants that doesn’t apply to brick-and-mortar stores, in violation of the federal Internet Tax Freedom Act and US Constitution. But the lower court correctly held it had no subject matter jurisdiction, the unpublished, unsigned opinion said.

• State law on declaratory judgments specifically prohibits relief in controversies over taxes, the Hawaii ...