Online Travel Companies Cheat States Out of Tax Revenue

Online travel companies (like Expedia, Priceline, and others) contract with hotels to sell rooms to consumers and pay a certain portion of the sale price to the hotels. Online travel companies then typically fail to remit state and local taxes on the rate paid by consumers; paying taxes only on the rate they pay to the hotels and pocketing the difference. This deprives cities and states of much needed tax revenue. Online travel companies need to play by the rules and remit all state and local taxes, instead of deceptively keeping state and local tax revenue for themselves.