TALLAHASSEE, FL -- Attorney General Bill McCollum has sued Expedia, Inc., Orbitz, LLC, and Orbitz, Inc., the two leading internet travel companies.
McCollum says Expedia and Orbitz are not paying the state of Florida a fair share of hotel taxes when customers book through their sites.
According to a new release from McCollum’s office, "The lawsuit states that while the companies have been collecting these taxes from consumers all along, they have only been remitting a portion of the taxes owed to taxing authorities, keeping the rest as profit."
McCollum says the state is receiving taxes based on the wholesale rate of a hotel room, not the retail rate that customers pay.
"Consumers are already paying taxes and fees when purchasing a Florida hotel room online, yet the online travel companies have been keeping too much of those taxes as profit,” said Attorney General McCollum. “If these taxes are due to the State, the companies should pay them for the benefit of the people of Florida."
