Cases & Deals

Expedia,, and Hotwire prevail before Hawaii Supreme Court resulting in tax refund in excess of $130 million

Clients Expedia, Inc.,, L.P. and Hotwire, Inc.

Jones Day secured a tax refund in excess of $130 million for clients Expedia, Inc.,, L.P. and Hotwire, Inc. by prevailing in the Hawaii Supreme Court on the issue of whether online travel companies are liable for Hawaii's transient accommodations tax ("TAT") and general excise tax ("GET"). The Hawaii Supreme Court affirmed the trial court's ruling in favor of the Expedia companies, holding that they are not liable for TAT. The Hawaii Supreme Court also reversed a trial court ruling that the Expedia companies were liable for GET on the entire amount paid by the traveler, instead holding that the Expedia companies are obligated to remit GET only on their margin and service fees.

In the Matter of the Tax Appeal of Travelocity.Com, LP, SCAP 13-0002896 (Haw.)

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