Monday, November 23, 2009

Florida first US state to sue Expedia, Orbitz for room taxes

Florida has become the first U.S. state to join the ever-growing ranks of municipalities suing online travel agencies over alleged failure to remit taxes.


Expedia, Orbitz LLC and Orbitz Incorporated have been targeted by the state’s attorney general’s office, which claims the OTAs owe the state tax money for the rooms they have sold to consumers. The state claims the OTAs are only remitting taxes on the discounted rate at which the rooms are sold, rather than the full price of the room.

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