Booking.com gets Hawaii justices to revive use tax rule case

THE NEWS: The Hawaii Supreme Court on Friday revived Booking.com BV’s challenge to a state use‑tax rule after the state had assessed $19.7 million in use taxes on the company’s services.

DETAILS:

• Booking.com filed its challenge to the tax rule before the $19.7 million assessment was levied.
• The Court vacated the lower‑court dismissal, allowing the case to proceed.
• Justice Sabrina S. McKenna wrote the unanimous opinion.
• The Court held that a separate statute governing challenges to regulations does not prohibit declaratory relief on the validity of a tax‑administrative rule.

FAQ

What amount of use taxes did Hawaii assess on Booking.com BV?
Hawaii assessed $19.7 million in use taxes on Booking.com BV’s services before the company filed a legal challenge, prompting the firm to seek declaratory relief on the tax rule’s validity, a challenge the Hawaii Supreme Court later revived.

Which court revived Booking.com’s challenge to the Hawaii tax rule?
The Hawaii Supreme Court, in a unanimous decision, revived Booking.com’s challenge by vacating the dismissal of the case, thereby permitting the company to continue contesting the validity of the state’s use‑tax rule.

Who authored the Hawaii Supreme Court opinion in the Booking.com case?
Justice Sabrina S. McKenna authored the unanimous opinion of the Hawaii Supreme Court that vacated the dismissal and allowed Booking.com BV to pursue its challenge to the state’s tax rule.

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