Ohio – Sales and Use Tax: Service Fees Charged by Online Travel Companies Were Not Taxable

The U.S. District Court for the Northern District of Ohio granted summary judgment to online travel companies (OTC) because it concluded that the surcharges and service fees charged by the OTCs did not qualify as guest taxes. The OTCs contract with hotels for rooms at discounted rates (“net rates”) and resell the rooms to consumers at marked-up rates (“reservation rates”)…

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