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Gazette Premium Content Montgomery Co. settles suit with Travelocity

Associated Press Updated: March 24, 2014 at 10:30 am

BALTIMORE (AP) — Montgomery County has settled a suit against online hotel-booking company Travelocity over allegedly unpaid occupancy taxes.

The Daily Record reports (http://bit.ly/1dGoiUl ) that a U.S. District Court judge approved a settlement Thursday.

The case is one of several filed by Maryland jurisdictions against online booking companies starting in 2008. The jurisdictions argued that the companies must pay room taxes on the rates charged to customers, not on the lower rates they pay to hotels. But the companies have argued that they are providing a booking service, not operating the hotel.

Attorney J. Stephen Simms, who represents the defendants in the various cases, says settlement terms are confidential.

Last week's settlement leaves only one suit in litigation, a case between Baltimore and Travelocity. Simms says no trial date has been set.

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