Portland and Multnomah Co. settle lawsuit with travel websites - KPTV - FOX 12

Portland and Multnomah Co. settle lawsuit with travel websites

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PORTLAND, OR (KPTV) -

A lawsuit filed by Portland and Multnomah County in an effort to collect hotel taxes from online travel sites is over.

The city and county settled their $5.3 million filing against the companies behind travel discount sites like Expedia, Priceline and Orbitz.

At the center of the suit was the tax money the city and county claimed they were losing from the sales through the discount sites. Local hotels would pay taxes on the rates at which they sold the rooms to the sites, but the sites would not pay tax on the difference between those rates and the price at which they would offer the room to users.

Through the settlement the city will get $1.9 million and the county will receive $1.7 million, and all claims against the companies are resolved.

Portland collects hotel tax money for Multnomah County under an intergovernmental agreement.

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