“City Collects $18 Million in Settlement with Hotel Booking Sites,” Chicago Tribune
July 18, 2017
Hotel reservation websites have paid the city $18 million to settle a 12-year-old lawsuit filed by the city of Chicago to collect higher tax payments.
The payment by Expedia, Hotels.com and Hotwire comes after the state appellate court earlier this year overturned a $29.1 million judgment for the city.
A Cook County judge in 2015 had found the sites should have calculated a then-3.5 percent hotel tax not just on what hotels collected for the rooms, but also the reservation sites' facilitation and service fees. An appeals court disagreed earlier this year.
Cohen Milstein Sellers & Toll represented the city of Chicago in the suit.