Online travel sites agree to partial settlement with Georgia cities and counties

Several travel websites have agreed to a partial settlement with hundreds of Georgia cities and counties. The settlement comes after a class action lawsuit filed in 2005 that accuses the websites of failing to pay some hotel/motel taxes owed to local governments.

Websites such as Expedia, Orbitz, Priceline.com and Travelocity are accused of only paying hotel occupancy taxes on the wholesale rates they pay to reserve hotel rooms.

The local governments claimed once the sites mark those hotel rooms up for consumers, they failed to pay the additional occupancy taxes owed to cities and counties.