Online travel sector sets precedent for US tax collection
The online travel sector set precedents for the tax debate Airbnb is wading into. Reservation sites such as Expedia, Orbitz and Priceline have been mired in legal battles for years with municipal governments from Florida to Hawaii.
Taxes have long been the ire of internet companies that build their businesses in the borderless ether, only to later garner the attention of regulators once they achieve market success.
After more than a decade-long exemption, the US Congress is deliberating on a bill that will require ecommerce companies such as Amazon and eBay
to pay the same sales taxes that physical retailers such Walmart, Best Buy, and the local shoe store do.Must read: PM postpones GST rollout on states' refusal to toe lineThe online travel sector set precedents for the tax debate Airbnb is wading into. Reservation sites such as Expedia, Orbitz and Priceline have been mired in legal battles for years with municipal governments from Florida to Hawaii, whose officials argue the travel sites are not handing over all the taxes they collect on hotel room bookings in their cities."As these businesses get larger and have a bigger impact on tourism, then there's going to be more attention paid to them," said Douglas Quinby, an analyst at PhoCusWright.Company defences are rooted in history, too. Just as eBay is seeking an exemption from online sales taxes for small businesses that use its site, saying the regulations are too onerous for the sole entrepreneurs, Airbnb wants its hosts excused from taxes.These are just "regular people hosting to make ends meet", the company said. More News From Financial Times
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