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Online Travel Companies Now Responsible for Same Occupancy Tax as Hotels

Washington, D.C. – January 25, 2016 – The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the nearly two million-employee lodging industry, today issued a statement following votes in both chambers of Maryland’s General Assembly to override the veto by Governor Hogan of SB 190, closing a loophole for online travel companies and ensuring they pay their fair share of taxes on rooms booked online. 

 “The hotel industry applauds Maryland Senators and Delegates for overriding Governor Hogan’s veto of legislation that protects Maryland’s jobs and secures millions of dollars in uncollected tax revenue that supports so much of the infrastructure, tourism promotion, local development and economic growth in communities across the state. This commonsense legislation marks an important step forward in creating a level playing field by ensuring online travel companies will no longer exploit this tax loophole. They will now be required to pay the same occupancy taxes as hotels do,” said Katherine Lugar, president and CEO of the American Hotel and Lodging Association.

“Our industry prides itself on being a partner with communities across the state of Maryland, and the Maryland Hotel & Lodging Association (MH&LA) is absolutely essential to building those relationships and driving growth in the state. Maryland hotels generate more than $1.2 billion in tax revenue, and through the leadership of the President & CEO of the MH&LA Amy Rohrer, as well as Marriott International, and our member properties across the state, Maryland’s legislators recognized the importance to right this wrong and close a loophole that has benefited online travel companies at the expense of in-state hotels employing thousands of Marylanders.”

To view the hotel industry’s contributions to economic growth and job creation in Maryland, please click here

About AH&LA

Serving the hospitality industry for more than a century, the American Hotel & Lodging Association (AH&LA) is the sole national association representing all segments of the 1.9 million-employee U.S. lodging industry, including hotel owners, REITs, chains, franchisees, management companies, independent properties, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides focused advocacy, communications support, and educational resources for an industry of more than 53,000 properties generating $176 billion in annual sales from 5 million guestrooms.

Contact: Katie Longo

klongo@ahla.com

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