by David Chapman
Staff Writer
The City could soon receive more than $376,000 as part of a settlement with Internet travel companies over recovery of bed tax fees.
The net figure, including attorney fees, stems from settlement of the legal battle be-tween 33 Florida counties and on-line travel-booking companies on collection of bed taxes from the online businesses that purchase hotel rooms at one rate and sell at another.
The City Council Finance Committee approved the ordinance for the settlement Tuesday after discussion with General Counsel Cindy Laquidara.
The measure was introduced to council by the council president at Laquidara’s request.
The bill summary states that it approves a legal settlement in a lawsuit filed by Monroe County, which the City later joined, against Priceline.com and other travel booking websites for failure to collect and remit applicable tourist development-related funds for accommodations booked through the websites.
The Monroe case was filed in 2009 in U.S. District Court in Southern Florida.
Under the settlement, municipalities are prohibited from passing an ordinance over the next three years that would attempt to collect such taxes. In exchange for the partial release of the claim, the defendants agree to pay the City the settlement.
Laquidara recommended the settlement to the committee and said the issue of Internet taxes as a whole is being taken up by Florida Legislature that could potentially change the course of action by municipalities.
“This is clearly a compromise figure,” said Laquidara. “The Internet travel companies have not in any way conceded they owed us any of this money,” she said.
“It was quite a battle.”
Laquidara called the legal battle a “slugfest.”
She said the three-year window would allow counties to recoup some of the money owed while formulating a uniform strategy to take to the Legislature on both bed and sales taxes generated by Internet sales.
She said such a cooling-off period would give the City a chance to focus and “see where we want to be and how much resources we want to put in.”
The alternative would be for Duval County to individually pursue such companies, and such litigation could take at least three years.
She also warned that pursuing a class action lawsuit “is not always the best way to control your destiny.”
Council member Michael Corrigan said he’d support the settlement measure and said it started during his time as Tourism Development Council chair four years ago.
“It’s frustrating, but at least we’re getting something back and hopefully setting some groundwork for it,” said Corrigan.
“But, it is frustrating how we are not getting what we’re really due. But in this case, it may be the best-case scenario,” he said.
If approved by the council, the money would be divided equally among three miscellaneous bed tax accounts for the Tourist Development Council, the convention center and the stadium.
In other actions:
• The committee approved an ordinance to repeal an article of the City Charter regarding the Water and Sewer Expansion Authority. The measure would terminate the authority and divide its assets, liabilities and duties between the Public Works Department’s Stormwater Utility/Septic Tank Phase-out operation and JEA. The authority was created in 2003 to address the need to extend public water and sewer services to areas of the city served by wells and septic tanks. It helped advance funds to homeowners willing to pay the cost of special assessments, with homeowners repaying over several years. With its repeal, the authority returns to JEA its unspent portion of 2010-11 operating funds and appropriates $3,762,689 in capital funds to the septic tank phaseout operation. The matter now goes to full council.
• Initially ready for vote, an ordinance that approves the sale of two surplus parcels on McCoys Creek Boulevard to Miner Properties for $32,000 and $30,000, respectively, was put on hold until the next cycle at the request of Finance Committee Chair Warren Jones. He said the council is waiting on John Pappas, City Public Works deputy director, to confirm there is no need for retention along McCoys Creek.
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