Expedia 2015 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2015 Expedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 147

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147

Village of Matteson, Illinois Litigation. On December 3, 2015, the Villages of Matteson, Bloomington and
Oakbrook, Illinois filed a lawsuit in Illinois state court against a number of online travel companies, including
certain Expedia companies. Village of Matteson, et al. v. Expedia, Inc. (WA), et al., Case No. 2015CHI7598
(Cook County Chancery Court, State of Illinois).
State of Wisconsin Litigation. On August 6, 2008, the Wisconsin Department of Revenue assessed Orbitz
for hotel taxes. Orbitz timely filed a Petition for Redetermination, which the Department denied on May 5, 2009.
Orbitz appealed the denial to the Wisconsin Tax Appeals Commission on July 6, 2009. On May 14, 2014, the
Commission held that hotel taxes are not due on Orbitz’s travel services. On June 13, 2014, the Wisconsin
Department of Revenue filed an appeal of the Commission’s decision. State of Wisconsin v. Orbitz, Case No. 14-
CV-1708 (2014). On December 11, 2014, the Circuit Court of Dane County affirmed the Wisconsin Tax Appeal
Commission’s ruling in favor of Orbitz. On January 2, 2015, the Wisconsin Department of Revenue filed an
appeal to the court of appeals.
Palm Beach, Florida Litigation. On February 21, 2014, Palm Beach County, Florida filed a lawsuit in
Florida state court against HomeAway and other vacation rental listing businesses seeking tourist development
taxes imposed by Palm Beach County. Palm Beach County v. Airbnb, Inc., et al., Case
No. 502014CA000428XXXXMBAO (15th Judicial Circuit Court, Palm Beach County, Florida). On
September 16, 2014, the defendants filed a motion to dismiss the complaint. On December 12, 2014, the court
denied the motion. On July 20, 2015, the defendants filed a motion for judgment on the pleadings. On
November 5, 2015, the court denied defendants’ motion.
Portland, Oregon Litigation. On October 21, 2015, the City of Portland, Oregon filed a lawsuit in federal
district court against HomeAway. The complaint alleges claims for declaratory judgment, injunctive relief, taxes
and fines for alleged violations of Portland Transient Lodgings Tax ordinance, including alleged failures to
reister, collect and remit tax, and display certain information in advertisements and websites. City of Portland,
Oregon v. Homeaway.com, Inc., et al., Case No. 3:15-cv-01984-MO (D. Or.). On November 13, 2015,
HomeAway filed a motion to dismiss.
Notices of Audit or Tax Assessments
At various times, the Company has also received notices of audit, or tax assessments from over 15 states or
counties and over 80 municipalities concerning our possible obligations with respect to state and local occupancy
or other taxes.
Actions Filed by Expedia
Broward County, Florida Litigation. On January 12, 2009, certain Expedia companies 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). 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 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. Broward County filed a notice
of appeal of the trial court’s decision. On February 12, 2014, the Florida Court of Appeals affirmed the trial court
decision in favor of the online travel companies. This case was stayed pending the Florida Supreme Court’s
decision in the Leon County, Florida et. al. Litigation. On September 25, 2015, the Florida Supreme Court
ordered the county to show cause why the Court’s decision in the Leon County case is not controlling in this case
and why the Court should not decline to accept jurisdiction in this case. On December 9, 2015, the Court issued
an order declining to accept jurisdiction and denying Broward County’s petition for discretionary review, thereby
ending the case.
37