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Another internet hotel-booking suit thrown out
Orange County in Florida became the latest to be thwarted from collecting higher hotel taxes from online travel companies after a judge threw out a lawsuit brought by county officials.
The county contended the Internet hotel-booking agencies were not fully paying local taxes.
The dispute focused on the way online companies like Expedia and Orbitz calculate their tax payments. The companies generally negotiate lower rates with hotels for a large number of rooms then offer those rooms to customers at a higher price.
But the companies pay taxes to the county on the lower rate, saying the higher price the consumer pays is the charge of the service not the cost of the room.
Auditors have calculated that Orange County misses out on at least $5.5 million a year in hotel taxes because of online bookings.
The issue has been appearing all over the country with tourism officials usually on the losing end of the battle.
Orange County lawyers told the Orlando Sentinel they expected to appeal.
Report by David Wilkening
David
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