Attorneys for the District of Columbia filed a lawsuit Tuesday against online travel companies including Expedia, Orbitz, Travelocity and Priceline, alleging the companies owe the city millions of dollars per year in sales tax that they aren't paying.
The lawsuit in Superior Court in Washington is similar to more than 40 others pending around the country, and cities have met with mixed success in cases already decided by courts. The District's lawyers, like their counterparts elsewhere, contend the companies charge customers hotel tax on the full price of a room but only return tax to the city based on the wholesale rate the company paid.
(Associated Press)
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