Quantcast
Home / Home news / City of Chandler seeks to recoup sales taxes from online travel companies

City of Chandler seeks to recoup sales taxes from online travel companies

City of Chandler seeks to recoup sales taxes from online travel companiesThe city of Chandler is turning to legal action to recoup $131,000 in sales taxes that city officials allege online travel companies haven’t paid.

The Arizona Republic reports that the figure is based on a preliminary audit of several cities in metro Phoenix that alleges about $8 million in unpaid taxes are owed to the cities by at least four online travel companies, including Expedia, Orbitz, Priceline and Travelocity.

Currently, if an online travel company buys a discounted hotel room at, for example, $40, then sells it to a customer for $100, it does not pay taxes on the $60 difference.

But Chandler officials believe those sales should qualify as a brokerage transaction under the city’s tax code and should be taxed for the full amount.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

 

x

Check Also

Teachers rallied at the Arizona Capitol on May 2, 2017, after Rep. John Allen said teachers got second jobs to increase their lifestyle and buy boats. Teachers chanted that they wanted a 4 percent raise from the state. (Photo by Rachel Leingang, Arizona Capitol Times)

Arizona governor gives raises to aides despite lean budget

Arizona Gov. Doug Ducey has given 44 of his staffers raises of up to 20 percent despite offering teachers raises of less than 1 percent because of a lean budget.