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Online hotel booking companies lose Wyo. tax fight

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Entertainment,Travel

CHEYENNE, Wyo. (AP) — A effort by Wyoming to collect more taxes from online travel companies such as Travelocity, Expedia and Priceline for hotel bookings will likely end up in court.

The Wyoming Eagle Tribune Saturday (http://bit.ly/14vrTUn ) reports the issue is the difference between the wholesale price paid by the companies to book rooms and the retail price charged to customers, as well a so-called "tax recovery charge." Wyoming officials say the companies should pay taxes on the retail price.

The companies argue that they operate outside of Wyoming and are not subject to the full retail tax amount. The Board of Equalization ruled in the state's favor in February.

Rulings in other states have been mixed. The Travel Technology Association that represents such companies did not immediately return messages.

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