Tags: US | Hotel | Taxes | Lawsuit

Ky. Judge Rules in Favor of Online Travel Sites

Friday, 09 Apr 2010 11:28 AM

A south-central Kentucky judge has dismissed a lawsuit against online travel companies that don't collect lodging taxes on the fees they collect for securing hotel rooms.

Warren District Judge Steve Wilson said in dismissing the case Thursday that companies such as Expedia and Travelocity were not envisioned when relevant state and local laws were passed.

The lawsuit is one of dozens filed by officials in Kentucky and elsewhere seeking to collect revenue from the online companies, which secure hotel rooms at reduced rates and market them to travelers at a profit.

A similar federal lawsuit filed by Louisville and Lexington officials was dismissed in 2008. The judge in that case and Wilson both wrote that it's up to lawmakers whether cities should be entitled to collect the taxes from online companies.

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