Core Viewpoint - A panel of experts concluded that claims against LuxUrban Hotels Inc. regarding large-scale tax liabilities in New York are likely inaccurate and legally precluded under state and city law, as well as inconsistent with established OTA payment systems [1][2]. Findings and Legal Basis - Between 2020 and 2025, LuxUrban Hotels generated approximately $248 million in gross room revenue across 11 U.S. states and cities, with audited net room revenue totaling $149 million, of which only $56 million (22.6%) originated from New York operations [3]. - Under New York State Tax Law, entities defined as "room remarketers" or "resellers," including OTAs, are responsible for collecting customer payments and remitting occupancy and sales taxes [4]. - Legal precedents confirm that hotels do not remit occupancy taxes for prepaid OTA transactions; instead, OTAs handle these responsibilities [5]. Implications Beyond Taxation - The OTA payment and tax structure defines the merchant-customer relationship and tax responsibility, indicating that LuxUrban did not control or process customer payments for 92–97% of its bookings [6][7]. Potential Damages and Legal Exposure of False Claims - False claims alleging unpaid taxes may expose responsible parties to defamation and commercial disparagement under New York law, with potential recoverable damages for LuxUrban reaching into the tens of millions of dollars [8][9]. - The spokesperson emphasized that the issue is a matter of law and factual record, asserting that LuxUrban neither processed guest payments nor collected occupancy taxes for OTA-booked stays [10].