DURHAM -- Orbitz and five other Web-based travel companies are suing Durham County and the state over a new law that's trying to make them pay sales and occupancy taxes on Internet-arranged hotel stays.
The lawsuit, filed Feb. 4, alleges the governments are violating both the U.S. and North Carolina constitutions, along with a federal law that's supposed to protect e-commerce from multiple or discriminatory taxes.
The filing put Durham in the front lines of a major nationwide fight between the online travel industry and states that feel they're being cheated out of tax revenue. It has produced similar litigation in places like New York City.
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