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The Tax Trap Behind Vrbo’s $18.8M Michigan Lawsuit
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Subscribe06 JAN 2026 / ACCOUNTING & TAXES
Short-term rental platform HomeAway, a subsidiary of Vrbo, is disputing a tax bill totalling $18.8 million, including interest, with the state of Michigan. The case could set a precedent for how far states can push platform liability when modern digital business models outpace tax legislation; Michigan alleges that by collecting a 6% tax on bookings, HomeAway became responsible for remitting it, although HomeAway argues the tax was always passed directly to hosts.
When a tax bill explodes to $18.8 million, it is rarely about the math. It is about fingerprints. Who touched the money, who held it for a millisecond, and who the law decides should have known better. That question now sits at the center of a courtr...
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