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FOR IMMEDIATE RELEASE |
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State
Rep. Thaddeus Kirkland |
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Kirkland introduces bill to require uniform hotel tax
for consumers, online travel companies
HARRISBURG, June 10 – State Rep. Thaddeus Kirkland, D-Delaware, chairman of the House Tourism and Recreational Development Committee, has introduced legislation that would require online travel companies to pay hotel tax on the full amount they charge customers for their reservation and booking services.
"My legislation would stop allowing these companies to keep what translates to millions of dollars in unpaid hotel tax revenues," Kirkland said."If the online company purchases a $100 hotel room for $50 and charges $80 to the consumer, they only pay the hotel tax based on the $50, and that is unfair to consumers who pay the full tax when they deal directly with the hotel."
Kirkland's legislation (H.B. 1651) would require online travel companies, such as Travelocity, Orbitz and Expedia, to pay hotel tax on the retail rate they charge customers who book rooms through them instead of the wholesale rate they negotiate with hotels. The online companies contract with hotels for a number of rooms at a negotiated wholesale rate, determine their profit margin, and then set the retail rate that consumers pay.
The bill is being reviewed in the House Tourism and Recreational Development committee.
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