Trials & Litigation
Online Travel Companies Must Rework Pricing Formulas to Pay More Hotel Taxes, Ga. Supreme Court Says
Online travel companies that book Atlanta hotel rooms should rework their pricing formula to pay the city more in occupancy taxes, the Georgia Supreme Court found today.
Under the existing structure, the Associated Press reported, a travel site that buys a hotel room for $50 and sells it for $100 pays taxes for the lower amount.
Brought by the city of Atlanta in 2006, the case named 17 defendants, including Hotels.com, Expedia and Orbitz. The opinion (PDF) also found that the companies do not have to repay millions of dollars in back taxes.
Similar actions have been filed in various states, including California, Illinois, Texas and New York. Many of the complaints have been dismissed, according to the Associated Press, but others are pending.
