United Kingdom
United States
Asia Pacific
Chicago sues internet travel companies for cheating on hotel tax
The City of Chicago has sued more than a dozen online travel companies for underpaying cheating the city on hotel taxes for many years.
Hotels.com, Hotwire, Cheap Tickets, Cendant Travel, Expedia, Lodging.com, Lowestfare.com, Maupintour, Orbitz, Price-line.com, Site59.com, Travelocity.com, Travelweb and Travelnow.com are accused of not having paid the full 3.5 percent hotel tax levied by the city.
In its suit, the city says the companies negotiate special discount prices with hotels in Chicago and are paying taxes on their lower ‘discounted cost’ as apposed to the higher marked-up ‘retail price’ they collect from consumer.
The 3.5% tax on the $30 markup for a sample $70 net rate the online travel companies pay a hotel, which they sell for $100 to consumers is at issue.
Over the past year, several other US taxing authorities have initiated similar lawsuits against internet travel companies. More are expected to follow.
Related News Stories:
David
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled