Clark County, Nevada - home to the Las Vegas Strip - has joined a lawsuit filed in 2020 by 2 Las Vegas PR executives against 13 online travel agents (OTAs) including Orbitz, Hotwire, Expedia, Travelocity, Priceline, Hotels.com and others.
The suit alleges that for years the OTAs have been booking hotel rooms in Clark County but underpaying the Transient Lodging Tax on hotel room sales required by Clark Code County Code Title 4 - potentially to the tune of up to a billion dollars.
Meanwhile, a separate suit filed by Clark County is in process in federal court.
The OTAs have filed with the Nevada Supreme Court a petition for dismissal of the suit on the grounds that the PR execs lack the necessary filing status, along with the fact of the County's federal suit. That petition remains pending.
Room tax revenues are paid to the State of Nevada, which in turn distributes them to regional and local government entities like the Clark County School District and the Las Vegas CVB.
Will either of the courts involved find against the OTAs? Are other jurisdictions positioned to pursue similar lawsuits? There's a lot of money at stake. Stay tuned.