County joins lawsuit against online booking companies

By Andrew OBrien
| 5:00 a.m. February 28, 2011

The county charges a 4% bed tax on short-term rentals. Online traveling companies are neglecting to collect that tax.

Palm Coast Observer
News

Flagler County has joined with several other Florida counties in a lawsuit against online booking agencies.

Companies such as Orbitz, Trevelocity, Expedia, Priceline and others don’t charge the 4% sales tax on short-term rental; therefore the counties are losing out on the 4% bed tax, according to Carl Laundrie, spokesman for the county.

County Attorney Al Hadeed said the lawsuit will go as far back as the audit warrants, adding: “We have no way of knowing the amount (of money) that might be owed plus interest and penalties on that amount.”

Peggy Heiser, vice president of tourism development for the Flagler County Chamber of Commerce & Affiliates, said the money the county is trying to recover will ultimately help marketing efforts.

“We’re trying to recover taxes that are being left on the table that could be used for marketing and benefitting the economy here,” Heiser said.

The other counties involved in the lawsuit include Leon, Lee, Manatee, Pinellas, Polk, St. Johns, Escambia, Charlotte, Walton, Hillsborough and Pasco.