A win for the OTCs! The Wisconsin Court of Appeals, District IV, held an online hotel booking company's reservation facilitation services were not taxable services because the service that Orbitz provided did not qualify as "furnishing rooms" as taxable under the Wisconsin statute. Once again, it all comes down to the breadth of the statute's language and whether it encompasses the OTC's model. http://www.wisbar.org/forPublic/INeedInformation/Tax%20Appeals%20Commission/2014/09-S-123.HTM.
This same issue is being considered in Illinois on a motion for summary judgment filed by multiple municipalities. How that decision will turn will again, come down to the enabling statutes/ordinances language. For a more in-depth discussion of the OTC's and their business models, refer to my article, "Mind the Gap:The Current Debate Between States and Municipalities and Online Travel Companies over the Taxability over the Remittance Gap;" as well as an updated look at the compliance woes of not only OTCs, but also Airbnb in, "The Struggle is Real: Airbnb is Faced with the Same Compliance & Collection Woes as Traditional Hotels and the Online Travel Companies."