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ASTA Files Lawsuit Against New York City Hotel TaxDecember 23, 2009 By: George Dooley
ASTA, Expedia Inc., Hotels.com LP, Orbitz Worldwide Inc., Priceline.com Inc., Travelocity.com LP and the USTOA have filed a lawsuit against New York City's hotel tax that was introduced in September. The lawsuit seeks to stop New York City from taxing hotel bookings.
The new hotel room occupancy tax (HROT) was imposed by New York City on September 1. ASTA has argued that New York City failed to answer critical questions and earlier said that the City’s interpretation of its new rules was unacceptable.
ASTA has also argued that the City did not provide the necessary guidance on issues of interpretation, application and enforcement which the City had assured ASTA would be covered.
The new tax on agency service fees was imposed by the City of New York without notice, hearing or other opportunity for meaningful input, ASTA said in September.