Travelocity.com v. ComptrollerAnnotate this Case
The Court of Appeals affirmed the decision of the tax court determining that, between 2003 and 2011, Travelocity.com LP was liable for sums due under the sales and use tax pursuant to Md. Code Tax-Gen. 11-102(a), holding that Travelocity was not liable to pay the sales and use tax during the relevant audit period.
The Comptroller of Maryland issued a tax assessment of almost $6.5 million. The tax court upheld the assessment, concluding that Travelocity's business of facilitating vehicle rentals and hotel room reservations was included in the sale of tangible personal property in Maryland, rendering Travelocity liable for the tax during the audit period at issue. The circuit court affirmed. The court of special appeals reversed. The court of appeals reversed, holding that Travelocity was not liable for the tax during the audit period at issue.