The New York Commissioner of Taxation and Finance determined that two individuals providing hotel-booking services were not required to collect New York sales and use tax.
The individuals acted as booking agents by finding hotel rooms for travelers. A traveler could go to their website, see the cost of rooms, and then reserve those rooms. The individuals did not operate or maintain any rooms or purchase the hotel rooms for resale, but they did enter into contracts with hotel operators.
In New York, "room remarketers" are people who arrange, reserve, and provide occupancy for a price determined by the remarketers themselves. Room remarketers are ordinarily required to collect sales tax. Because the individuals here did not have the right to determine the price of the rooms, they did not act as remarketers and did not have to collect sales and use tax.