Nine Alabama cities, including the state’s largest city, Birmingham, have filed a lawsuit saying Internet travel companies have underpaid lodging taxes by millions of dollars. The lawsuit filed in Jefferson County Circuit Court, alleges that Orbitz, Expedia, Travelocity and Priceline have been paying tax on rooms based on the wholesale rate they pay hotels and should be paying the retail rates they charge customers. In addition to Birmingham, the other cities are Huntsville, Decatur, Auburn, Madison, Anniston, Opelika, Fairhope and Gulf Shores. The Birmingham-Jefferson Civic Center Authority is also among those who brought the suit.
Source: Montgomery Advertiser
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