In re Transient Occupancy Tax 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 for transient occupancy tax.
In 2008, the City of San Francisco (the city) assessed transient occupancy taxes against the OTCs. The OTCs paid the tax assessments under protest and sued the city, challenging the assessments and seeking refunds. The trial court granted the OTCs’ motion for summary judgment, finding that the OTCs are not “operators” under the city’s ordinance and that any consideration above the amount received by the hotel itself is not rent, but consideration for services other than use or possession of a room. Judgment was entered, specifying the amount of refunds owed to the individual OTCs, along with pre- and post-judgment interest. The city appeals.
We find that the OTCs are not liable for TOT under the language of the city’s TOT ordinance, therefore we affirm the trial court’s judgment.
Comments on In re Transient Occupancy Tax Cases CA2/2