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Atlanta Sues Internet Travel Companies for Back Taxes

Expedia, Orbitz, Priceline and Travelocity are among the companies that have failed to remit the disputed hotel/motel room taxes.

In 2006, the city of Atlanta filed suit in Fulton County, Ga., Superior Court, alleging that online travel companies -- including Expedia, Orbitz, Priceline and Travelocity -- have failed to remit the hotel/motel room taxes the city says it is owed. The case has worked its way up to the Georgia Supreme Court, which yesterday heard arguments as to whether the case should continue or be dismissed.

The main issue appears to be that travel companies pay wholesale rates for blocks of rooms, and remit taxes based on those rates, while charging a higher rate to their customers. The city wants taxes on the higher rate.

Wayne E. Hanson served as a writer and editor with e.Republic from 1989 to 2013, having worked for several business units including Government Technology magazine, the Center for Digital Government, Governing, and Digital Communities. Hanson was a juror from 1999 to 2004 with the Stockholm Challenge and Global Junior Challenge competitions in information technology and education.