The lawsuits accuse online booking companies of chronically underpaying taxes ranging from 10.5% to 13.38%, calculated as a percentage of gross rental revenue.
Both court cases used the example of an online travel agency obtaining a hotel room for $ 150 and selling it online to a customer for $ 200, then paying state tax based on the price. wholesale less than $ 150.
“This business model deprives the Nevada tax authorities, including Clark County, of taxes owed to them on the full value of the transaction,” the county lawsuit said.
The amount in dispute includes more than $ 100 million in unpaid taxes, plus possibly an additional $ 100 million in damages, Cristalli said.
The proceeds would benefit tourism, schools, transportation and local government general fund accounts, according to the county lawsuit filed May 14 in Clark County District Court.
Lawyers representing at least 16 named defendants moved the case in July from state court to federal court, where a judge is now asked to refer it to state court.
In state court, a hearing is scheduled for September 2 before a Las Vegas judge who ruled in May not to dismiss the unusual “qui tam” civil lawsuit filed in April 2020 by Fierro and Rogich.
The deposit allows private whistleblowers to be rewarded for the positive results they take and the government recovers money lost due to misrepresentation or other types of fraud.