In a hunt for more revenue, Maryland officials are weighing ways to pressure hotel-booking websites such as Expedia and Orbitz to pay more taxes — a tactic that has netted some cities, counties and states tens of millions of dollars, but left others mired in lengthy legal battles.
The premise is simple. Maryland now collects sales taxes based on the bulk rates that the websites pay hotels for their rooms. But some officials say the taxes should be based on the higher prices for which the websites sell the rooms to customers.
Or, as Gov. Martin O'Malley put it recently: The typical booking website "somehow avoids paying the local hotel room tax."
The idea comes in lean budget times for the state: The General Assembly increased fees and taxes this year to meet a budget shortfall, tolls are increasing and a Senate budget panel is set to consider an array of new taxes, including expanding the sales tax to other Internet services.
1 comment:
That's good, tax the companies out of Maryland and kill more jobs because the state wants to pay people to sit home.
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