An administrative hearing officer has ordered a group
of online travel companies to pay the City of Anaheim $21.3 million dollars
in back taxes, interest and penalties. The companies have apparently been collecting Room Taxes from their customers, but have been paying the City only the tax on the
wholesale price paid by the online travel companies to the hotels.
The back taxes cover January 2000 through March 2008...and the ruling is expected to influence
a bunch of similar suits filed on behalf of local governments throughout
the country.
The OTAs have, of course, appealed. Stay tuned.
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