Jury awards $20 million in Texas hotel tax dispute

SAN ANTONIO -- A group of online travel services companies plans to appeal a $20 million verdict awarded to more than 170 Texas cities in a dispute over hotel occupancy taxes.

The 2006 class-action lawsuit was brought by cities wanting to collect tourism tax revenue they alleged was underpaid by Internet hotel room wholesalers. San Antonio and other Texas cities alleged the online companies booked blocks of rooms at, for example, $75 a night, resold them for $100, then paid taxes on the lower rate.

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