Expedia loses another lawsuit over pricing structure

Bellevue-based Expedia Inc. has lost another lawsuit over the collection of hotel/motel sales tax collection.

Officials from the city of Columbus, Ga. sued the online travel company, arguing that it collected hotel taxes based on a room’s higher retail price while paying the lower wholesale price.

The Georgia Supreme Court ruled 4-3 that Expedia must collect taxes on hotel room rentals based on the price a customer pays, and transfer that money to the city.

A lower court had previously ruled in the city’s favor.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

Municipalities nationwide have filed suits against online travel companies, alleging that their pricing schemes shortchange them of tax revenues.

Earlier this month, a King County Superior Court judge ruled against Expedia in a class-action lawsuit related to the same pricing model.

The judge ruled that the company should pay out $184 million in service fees to customers who booked a hotel stay from mid-February 2003 to mid-December 2006.

The online travel companies have argued that hotel/motel tax laws do not cover fees and other expenses included in the room rate charge, and that their pricing structures are privileged information.