A dispute over documents erupted in a Clark County courtroom this morning as lawyers argued over a case that could bring a massive windfall to Nevadans. It involves room tax money that helps build and fund schools, fix roads and contribute to public services like police.
The lawsuit alleges that online travel companies like Expedia and Orbitz have been pocketing millions in taxes that should go to the state.
WATCH | Nevada lawsuit claims Expedia, Orbitz kept hundreds of millions in hotel room taxes
Nevada lawsuit claims Expedia, Orbitz kept hundreds of millions in hotel room taxes
The scheme works like this: Hotels sell rooms to booking sites at a wholesale price. The sites mark up the price, sell the room to consumers and collect taxes at that higher rate — but only pay tax on the lower wholesale price they originally paid. That means more tax money goes into the booking sites’ pockets than into Nevada’s…