Arizona's supreme court requires online travel companies, or OTCs, to pay local taxes on the revenue they receive for arranging hotel stays in the state. The court determined that OTCs do not qualify as being in the business of operating a hotel and thus found that the local privilege tax on hotels didn't apply.
Breen spoke with Tax Notes regarding her disappointment about the Arizona supreme court's definition of what constitutes hotel operation but does support the court's decision to retroactively apply the tax. She argues that guidance needs to be published in order to be effective.
"Arizona High Court Says Online Travel Companies Owe Local Taxes" by Paul Jones and Andrea Muse at Tax Notes was published 9/11/19.