Hawaii Supreme Court considers tax appeal by travel firms

HONOLULU — The Hawaii Supreme Court will decide whether online travel companies are required to pay general excise taxes for car rentals they sell in the state.

The Honolulu Star-Advertiser reports the travel companies are appealing a 2016 state court ruling that required the companies to pay the tax.

Gary Cruciani, an attorney representing the state Department of Taxation, says Expedia, Priceline and Travelocity owe the state about $30 million.

Paul Alston, who is resenting the companies, told the court in oral arguments Thursday that renting cars is a tourism-related service protected by state law from taxing at the retail level if it was already taxed at wholesale, so the companies should not pay general excise taxes.

The court is expected to issue a ruling in the coming months.

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Information from: Honolulu Star-Advertiser, http://www.staradvertiser.com