The City of Fairview Heights, Illinois has filed a class action lawsuit against Internet travel brokers, Priceline.com, Hotels.com, LowestFares.com, Travelocity.com, Travelnow.com, Site59.com, Travelweb, Orbitz, Hotwire, Cheap Tickets and Expedia, for failing to remit hotel occupancy taxes that they collected from online consumers but never remitted to municipal taxing authorities.
The complaint alleges that the defendants have been remitting occupancy taxes based only on the wholesale rates they have negotiated with hotels, while charging customers for taxes based on full retail room rates, and pocketing the difference.
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