Ohio senators on Tuesday removed a tax change tucked into the massive state budget bill that would give local governments a small revenue boost.
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Online hotel booking tax
Hotels say online travel companies like Expedia and Travelocity aren’t paying their fair share in sales and lodging taxes. Here is how it works:
- Customer booking through an online travel website finds a $100 room
- Customer pays $110 for room plus tax
- Online travel company pays hotel $80 for the room plus $8 tax, keeping $20 plus a $2 fee
- Hotel remits the $8 to the state, $2 less than if the customer had booked the room through the hotel website for the same price