Cities sue travel websites

Published 04/08 2013 10:36PM

Updated 04/09 2013 03:48PM

CHICAGO -- Several Illinois cities are suing some online travel sites claiming they aren't paying a fair share of hotel taxes.

Officials claim sites like Expedia and Travelocity aren't paying enough of the 11-percent hotel tax. The web sites buy hotel rooms in bulk at a discount price, then sell those rooms at full price online.  

City leaders want companies to pay the tax on the actual cost of the rooms. But a lawyer for the travel companies argues the companies don't actually own the hotels.

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