Expedia 2013 Annual Report Download - page 42

Milpitas, Palmdale, Santa Rosa, and Pasadena, California; the county of Monterey, California; the cities of
Phoenix, Scottsdale, Tucson, Peoria, Apache Junction, Avondale, Chandler, Glendale, Flagstaff, Mesa, Nogales,
Prescott and Tempe, Arizona; Santa Fe, New Mexico; Jefferson County, Arkansas; the city of North Little Rock,
Arkansas; the city of Chicago, Illinois; the cities of New Orleans and Lafayette Parish, Louisiana; the city of
Baltimore, Maryland; New York City, New York; Greenwood Village, Broomfield, Durango, Frisco, Glendale,
Glenwood Springs, Golden, Greeley, Lafayette, Littleton, Longmont, Loveland, Silverthorne, Breckenridge, and
Denver Colorado; Multnomah County and Portland, Oregon; Lake County, Indiana; and Arlington, Texas,
among others, have begun or attempted to pursue formal or informal audits or administrative procedures, or
stated that they may assert claims against us relating to allegedly unpaid state or local hotel occupancy or related
taxes.
Actions Filed by Expedia
New York City Litigation. On December 21, 2009, Expedia, Hotels.com, Hotwire and other online travel
companies brought suit against the city of New York Department of Finance and the city of New York. The
complaint asserts two claims for declaratory judgment challenging the constitutionality and legality of the law
relating to New York City hotel room occupancy taxes passed on June 29, 2009. The trial court granted the City
of New York’s motion to dismiss the online travel companies’ claim that the city’s ordinance exceeded the scope
of its taxing authority. The online travel companies appealed that decision. On November 29, 2011, the Supreme
Court of New York, Appellate Division, reversed the trial court’s decision and ruled in favor of the online travel
companies, holding that the ordinance exceeded the scope of the city’s taxing authority. On November 20, 2012,
the New York Court of Appeals granted the city’s motion for leave to appeal directly to the New York Court of
Appeals. On November 21, 2013, the Court of Appeals reversed the intermediate appellate court’s decision and
reinstated the trial court’s decision that the ordinance did not exceed the city’s taxing authority.
Broward County, Florida Litigation. On January 12, 2009, Expedia, Hotels.com, and Hotwire filed separate
actions against Broward County, Florida and the Florida Department of Revenue. Expedia, Inc. et al. v. Broward
County Florida, et. al., Case Nos., 37 2009 CA 000131, 37 2009 CA 000129, and 37 2009 000128 (Second
Judicial Circuit Court, State of Florida, Leon County). The complaints contest the assessments against plaintiffs
on the grounds that plaintiffs are not subject to the tourist development tax, among other claims. On May 13,
2009, the court consolidated all cases brought by the online travel companies for all purposes except trial on any
of Broward County’s counterclaims. On July 13, 2012, the court granted the online travel companies’ motion for
partial summary judgment and motion for summary judgment as to Broward County’s counterclaims and held
that the online travel companies have no obligation to collect and remit hotel occupancy taxes. The court denied
Broward County’s cross motion for summary judgment. On February 5, 2013, Broward County filed a notice of
appeal of the trial court’s decision in favor of the online travel companies.
Indiana State Sales Tax and County Innkeeper Tax Assessments. On March 2, 2009, Travelscape, LLC,
Hotels.com and Hotwire filed petitions in Indiana Tax Court appealing the final determination of the Indiana
State Department of Revenue and seeking to enjoin the collection of the tax. Travelscape, LLC v. Indiana State
Department of Revenue, Cause No. 49T10-0903-TA-11; Hotels.com LP v. Indiana State Department of Revenue,
Cause No. 49T10-0903-TA-13; Hotwire, Inc. v. Indiana State Department of Revenue, Cause No. 49T10-0903-
TA-12.
Miami-Dade County, Florida Litigation. On December 18, 2009, Expedia, Inc., Hotwire and Hotels.com
brought suit against Miami-Dade for refund of hotel occupancy taxes assessed against the companies. Expedia,
Inc. v. Miami-Dade County, Florida and Florida Department of Revenue, Cause No. 09CA4978 (In the Circuit
Court of the Second Judicial Circuit in and for Leon County); Hotwire, Inc. v. Miami-Dade County, Cause
No. 09CA4977 (In the Circuit Court of the Second Judicial Circuit in and for Leon County); Hotels.com, L.P. v.
Miami-Dade County, Florida and Florida Department of Revenue, Cause No. 09CA4979 (In the Circuit Court of
the Second Judicial Circuit in and for Leon County). The companies moved to dismiss Miami-Dade’s
counterclaims. These cases have been consolidated with the cases brought by other online travel companies for
refund of hotel occupancy taxes. Miami-Dade County’s claims were settled as a part of the Monroe class action
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