Travel Cos. Ordered To Pay $55M In Texas Hotel Tax Case

Law360, Dallas (April 5, 2013, 8:25 PM EDT) -- A Texas federal judge on Thursday ordered Expedia Inc., LP, Hotwire Inc. and other online travel companies to pay more than $55 million to 173 Texas cities in a class action to recover allegedly underpaid hotel occupancy taxes.

U.S. District Judge Orlando Garcia said the booking companies must pay hotel occupancy taxes to the cities based on the full retail amount charged to customers, not the discounted wholesale room rate they pay participating hotels, and ordered the companies to immediately change their business practices to...
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