Judge halts Ky. cities' effort to make online sites pay hotel taxes

10/1/2008 | Bloomberg Businessweek

A federal judge has dismissed a lawsuit in which the cities of Lexington and Louisville, Ky., said that online travel sites such as Hotels.com owed back taxes that were not paid for bookings in the cities. The judge ruled that the tax laws in the cities and state inadequately address online hotel brokers and that they would have to pass new measures in order to collect taxes from online companies.

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