Online bookings mean lost money for Florida
March 30, 2004 |
As the merchant model goes online, officials not only in Florida are making a case saying online travel companies are skimping out on paying tourist and sales taxes.
The numbers don’t lie. Online travel is a growing business, it saves time, it saves money, and in some cases, travel experts say it boosts tourism. But Internet bookings can also mean a loss in tax revenue.
But some officials in Florida have said Web companies are skimping out on paying tourist and sales taxes. Here’s how it works. Online companies buy rooms in bulk at wholesale prices from hotels. According to tourism officials, these companies only collect taxes on the rate they pay, not full amount on what they charge customers. Hotels pay taxes based on the amount of money it receives, online retailers don’t tell guests how much money actually goes to the hotel.
“It’s a practice that’s going on as long as there have been wholesalers buying from hotels,” Ratcliffe said.
Get the full story at NBC12
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