Ruling: Online travel companies must pay taxes on Hawaii car ren - Hawaii News Now - KGMB and KHNL

Ruling: Online travel companies must pay taxes on Hawaii car rentals

(Image: Hawaii News Now/File) (Image: Hawaii News Now/File)
HONOLULU (HawaiiNewsNow) -

Online travel companies must pay Hawaii's general excise tax on certain rental car transactions, a state Circuit Court judge has ruled.

Judge Gary W.B. Chang said that companies like Expedia, Priceline, Travelocity, and Orbitz are required to pay up on the transactions, the state Attorney General's office said in a news release.

The state had issued GET tax assessments and penalties to online travel companies for failing to pay tax on rental car transactions from 2000 to 2012.

Separately, the Hawaii Supreme Court has ruled online travel companies must pay Hawaii's GET for hotel room bookings.

On Friday, Chang upheld tax assessments on gross receipts from online travel car rentals that aren't sold as part of a package.

It's not yet clear how much the companies will have to pay the state in taxes, penalties and interest, but the state had previously estimated the total was near $15 million.

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