Court: San Diego can't tax fees imposed by travel websites - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Court: San Diego can't tax fees imposed by travel websites

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SAN FRANCISCO (AP) - The California Supreme Court says San Diego can collect an occupancy tax on any charges that hotels require online travel websites to pass along to their customers.

But in a unanimous ruling Monday, the court said the city can't collect an occupancy tax on any fees online travel websites independently tack on. And the court said the city must collect taxes from the hotels themselves and can't go after the websites.

The ruling will affect hundreds of cities in California with occupancy tax ordinances similar to San Diego's.

Michael Colantuono, who represented the League of California Cities in the case, said the ruling was a partial win for local governments and a partial loss.

Emails to attorneys for the city and online travel websites, including Hotels.com, were not immediately returned.

Copyright 2016 The Associated Press.

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