Hotels.com and Travelocity.com won an early ruling in a dispute with the city of Anaheim, California over taxes, according to
Dallas Business Journal.
According to California's constitution, taxpayers who want to fight assessments of state tax must pay the tax before appearing in court. But before the Thanksgiving holiday, a judge ruled that the constitutional tax provision didn't apply in the Anaheim case because it only affected tax appeals against the state.
The city of Anaheim charged that Expedia, hotels.com and other online reservations companies collected money for occupancy taxes based on the retail price consumers paid, but paid taxes only based on the wholesale and sometimes, lower prices.
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Dallas Business Journal by clicking
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