Arizona cities seek potential millions in back taxes from Travelocity, Orbitz, Hotwire and others

Online-Hotel-BookingBy Chris Coppola | The Republic

Eleven Arizona cities want a judge to force c sites such as Travelocity, Orbitz, Hotwire and others to pay potentially millions of dollars in sales taxes for transactions dating back to 2001.

The motion comes on the heels of Judge Christopher Whitten’s April ruling in Arizona Tax Court that found the travel sites are required to pay local sales tax because they effectively operate as brokers for hotels, a function that is subject to the cities’ tax codes.

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