The Hawaii Supreme Court ruled in 2015 that online travel companies are required to pay state taxes for the Hawaii hotel rooms they sell over the internet.

The high court is now being asked to decide whether OTCs are required to pay Hawaii general excise taxes for island car rentals they sell online.

State Circuit Judge Gary W.B. Chang ruled in October and November 2016 that Expedia, Priceline.com, Travelocity.com and their affiliated companies are required to pay state GET on the car rentals they sell. For transactions that involve only car rentals, Chang said the OTCs must pay taxes on their gross receipts. For car rental sales that are part of a tour package, the OTCs are required to pay GET only on the portion of the proceeds from car rentals.

Chang also ruled that the OTCs owe GET for the tax years 2000-2013 plus penalties and interest.

Dallas lawyer Gary Cruciani, who is representing the state Department of Taxation in the OTCs’ appeal, says Expedia, Priceline.com and Travelocity.com owe the state $30 million under Chang’s ruling.

Honolulu lawyer Paul Alston, who is representing the OTCs, told the state’s high court justices in oral arguments Thursday that online travel companies shouldn’t have to pay state GET for car rental sales because renting cars is a tourism-related service protected by state law from taxing at the retail level if it was already taxed at wholesale.

Cruciani told the justices that renting cars is not a tourism-related service because state law does not list it as such. The law lists catamaran cruises, canoe rides, dinner cruises, lei greetings, transportation included in a tour package, sightseeing tours, admissions to luaus, dinner shows, extravaganzas, cultural and educational facilities and other services rendered directly to the customer or tourist.

Alston said car rentals qualify as a service rendered directly to a tourist.

“By every rational analysis it is a tourism-related service,” he said.

Cruciani said state lawmakers didn’t list renting cars as a tourism-related service because by its nature it’s not.

“The classic tourism- related activities are those that are done for enjoyment, primarily,” he said.

The state is objecting to Chang’s calculation of back taxes, claiming that the OTCs owe about $50 million.

The Supreme Court is expected to rule in the coming months.