Denver prevailed over travel companies like Expedia in court, awarded nearly $19 million
Author: Adam McCoy - December 7, 2017 - Updated: December 7, 2017
In a battle over hotel taxes, Denver took online travel giants like Expedia and Priceline to court and won nearly $19 million.
Denverite reported earlier this week on the court battle, which revolved around a discrepancy over taxes paid by online travel companies for hotel rooms. As the online outlet explains:
Sites like Expedia allow travelers to book rooms with hotels. They make some of their money by booking rooms at one rate, and then charging the consumer a higher rate. In other words, they mark up the prices.
Denver believed that many of these sites weren’t paying their full tax bills required by the city’s hotel tax. The sites were only paying the hotel tax on what they had paid for the rooms, not the higher price paid by the consumers.
The companies agreed to pay the money after losing an appeal in the Colorado Supreme Court, which can be found here. The $18.8 million will be split up between legal fees; funding for Visit Denver, a private, nonprofit association focused on marketing Denver; construction and projects at the Colorado Convention Center, and the city’s affordable housing fund, according to Denverite.