The city of Madison is suing Expedia, Priceline.com and four other online hotel booking companies to make them start paying city hotel room taxes. The industry maintains it's not subject to the tax.
Ald. Zach Brandon, 7th District, began pushing for recovery of the room taxes nearly two years ago.
Online companies collect and pay taxes on bulk-rate, wholesale room rates, but not the higher rates they charge customers, Brandon has said.
1.08.2008
Online Travel Booking Companies Do Not Pay Full Tax Responsibility...
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Cities suing EXPEDIA and other travel sites are old stories. What are the athorities doing? Specially the IRS. It seems that EXPEDIA has "privileged" rights and nobody can do anything. They are also freely scamming people. Source: www.victimsofexpedia.com
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