Tennessee lawmakers target hotel tax loophole - WRCBtv.com | Chattanooga News, Weather & Sports

Tennessee lawmakers target hotel tax loophole

Posted: Updated:

BLOUNT COUNTY, TN (Times Free Press) -- Tennessee legislators are debating whether to change state law in order to collect more taxes from online travel companies.

Proponents say the move will level the playing field between brick-and-mortar hotels and online booking agents while pumping more dollars into local economies. But opponents are calling the bill a misguided effort that will eventually backfire on local officials.

State Sen. Doug Overbey, R-Maryville, and Rep. Art Swann, R-Maryville, are co-sponsoring the bill. Online travel companies work by buying rooms from hotels in bulk at a lower price, then reselling those rooms to the consumer at a higher price, Overbey said.

Under current state law, the online travel companies are only required to pay the hotel/motel tax on the wholesale price they pay the hotel. But brick-and-mortar hotels are required to pay the tax on the price they charge the consumer.

Read more from our news partners at the Chattanooga Times Free Press.

Powered by WorldNow
Can't find what you're looking for?

WRCB-TV
900 Whitehall Road
Chattanooga, TN 37405
(423) 267-5412

WRCB Jobs EEO | FCC Public Files

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WRCB. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.