Montana Department of Revenue v. Priceline.Com, Inc.

¶1 The Montana Department of Revenue (Department) appeals a First Judicial District Court, Lewis and Clark County, ruling that Online Travel Companies (OTCs) are not taxable under Montana’s Lodging Facility Use Tax, §§ 15-65-101 through 136, MCA, or Sales Tax, §§ 15-68-101 through 820, MCA. We affirm in part and reverse in part.

*354¶2 We restate the issues on appeal as follows:

1. Whether the District Court erred in determining that the OTCs are not required to collect and remit taxes on OTC fees under the Lodging Facility Use Tax.

2. Whether the District Court erred in determining that the OTCs…