Mathias for, Carozza against online travel tax veto override

To sell extra room inventory, hotels contract with online travel agencies at a negotiated rate to sell what could conceivably end up being empty rooms.

In turn, the travel agencies sell the rooms close to what the hotels would charge for them anyway, pay the taxes based on their wholesale price and pocket the difference.

From the online agencies’ standpoint, they are simply paying taxes much in the same way most people do — a six-percent premium due at point of sale. Brick and mortar hotels, such as Maryland-based Marriott, see the situation as a competitive disadvantage, and urged lawmakers to level the playing field.

During the last session of the General Assembly, the House and Senate passed a bill to do just that, which Gov. Larry Hogan ultimately vetoed. Bolstering his decision was anti-tax crusader Grover Norquist, who labeled the measure a new tax on online businesses.

More