Marriott Carolina Beach|"Westchester May Join Hotel Tax Lawsuit"

Source             :    lohud.com
Category        :    Marriott Carolina Beach
By                  :    lohud
Posted By     :    Hotels Carolina Beach NC

Marriott Carolina Beach

Westchester County is considering whether to join a class action that alleges multiple online travel companies are not remitting all the hotel taxes they collect to local governments. The lawsuit, filed two years ago by Nassau County, claims Expedia, Priceline.com, Orbitz and similar businesses charge hotel taxes based on discounted rates they buy rooms for, not the higher rates they charge their consumers. “While Defendants charge and collect Hotel Taxes from occupants based on the marked up room rates, they only remit to the Class members, if anything, tax amounts based on the lower, negotiated room rates,” the filing said. “Defendants unlawfully pocket the difference.” The lawsuit, which was designated in April as a class action, comes at a time when local governments are struggling to find new revenues. All local governments that have imposed hotel taxes at any time since 1995 are plaintiffs unless they opt out by Oct. 11. Eighty local governments in New York have hotel taxes, the state Comptroller’s Office said.

Westchester County Executive Rob Astorino is recommending the county not opt out of the lawsuit. The county has a 3 percent hotel tax and collected $5.3 million in 2012. The Board of Legislators is reviewing his recommendation. “These companies are hitting taxpayers and visitors with a double whammy,” county spokeswoman Diana Costello said. “They collect a higher tax from consumers, and then put the profits in their own pockets instead of passing along what is due to Westchester.” Rye Brook, White Plains, New Rochelle and the city of Rye also have 3 percent hotel taxes. Rye Brook estimates it will collect $630,000 in taxes this year from its two hotels, the Hilton Westchester and Doral Arrowwood, said Chris Bradbury, village administrator. Rockland County is opting out because officials “figured it wasn’t going to benefit us in any real way,” said Stephen DeGroat, county finance commissioner. The county implemented a 3 percent hotel tax in April 2012, which yields about $1 million a year. Most people who stay in hotels and motels in Rockland book directly with hotels, he said.

Source : lohud.com/article/20130912/NEWS02/309120079/Westchester-may-join-hotel-tax-lawsuit