In re Transient Occupancy Cases CA2/2
This action is one of the coordinated “Transient Occupancy Tax Cases,” in which certain cities have sought to impose liability on online travel companies (OTCs) for transient occupancy tax (TOT). In a typical transaction, an OTC charges a transient room rental, plus a markup, and service fees. In this matter, appellant City of Los Angeles (the city) assessed alleged unpaid TOT against the OTCs based on the full amount of the OTCs’ markup and service fees. The OTCs filed a petition for writ of administrative mandate, seeking reversal of the assessments. The OTCs argued that the language of the city’s TOT ordinance did not encompass the OTCs or their markups and service fees. The trial court granted a motion for judgment in favor of the OTCs, and the city appeals.
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