In re Tax Appeal of Travelocity.Com., L.P. v. Director of Taxation.

Opinion of the Court by

POLLACK, J.

I. INTRODUCTION

This case considers whether the General Excise Tax (GET) and the Transient Accommodations Tax (TAT) are assessable on the relevant income of commercial entities operating under business models that were not expressly considered by the legislature when the applicable GET and TAT statutes were originally enacted. The Director of Taxation, State of Hawai'i (Director) retroactively assessed ten online travel companies for unpaid GET and TAT for periods beginning between 1999 and 2001 and continuing until 2011, plus applicable penalties.

The online…