Wyoming considers suing online travel services

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By The Associated Press

Story Published: Feb 8, 2010 at 4:16 PM MDT

Story Updated: Feb 8, 2010 at 4:16 PM MDT

CASPER, WYOMING - Online travel companies don't pay lodging taxes on the margins they make from negotiating rooms at wholesale rates and the retail prices paid by customers.

The online travel companies say they shouldn't pay any hotel taxes because they aren't in the hotel business. Some cities and counties around the nation have filed lawsuits, and some wonder if Wyoming should join in.

City of Casper attorneys say Wyoming probably loses at least $160,000 a year from unpaid lodging taxes. Wyoming's laws about lodging taxes are similar to those in Texas, where San Antonio and 160 other cities won a $20.6 million verdict in federal court against 11 online travel companies in October. However, litigation would be very expensive.

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