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Updated: 8:48 PM Nov 5, 2009
Florida Suing Online Travel Firms
In this corner -- the state of Florida. In the other corner -- online travel reservation sites. The prize -- millions of dollars in tax revenue. Posted: 9:41 AM Nov 5, 2009Reporter: Associated Press |
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In this corner -- the state of Florida. In the other corner -- online travel reservation sites. The prize -- millions of dollars in tax revenue.
Florida's attorney general is suing Expedia and Orbitz -- saying the sites have failed to pony up the full amount of taxes collected on hotel room rentals through the sites. Bill McCollum claims the sites have been collecting the taxes from customers, but not sending the full amount to the Sunshine State. At issue is the amount on which the taxes are paid. Consumers are charged a certain rate for a room, but the sites pocket service fees on the transaction and the remaining amount is paid to the hotel.
The sites then collect taxes based on the lesser amount. Florida claims the taxes should be paid on the rate before the sites take their cuts. Other states have filed similar lawsuits, saying they are owed millions of tax dollars.
