Breckenridge Suing Online Travel Companies

BRECKENRIDGE, Colo. (CBS4)- The town of Breckenridge is suing nearly two dozen online travel companies. Town leaders claim those websites are not paying the full lodging and sales taxes they should be.

The lawsuit claims the companies have purchased blocks of rooms from area hotels over the last decade and resold them online at a higher price.

The companies did not pay taxes on the difference in price. Other destination cities in Colorado may join in the class action lawsuit.

"That's what happened down in Georgia, where in fact all the municipalities joined together and joined the suit at the end of the day because they were all impacted by the loss of revenue," said Breckenridge Town Manager Tim Gagen.

The town said the unpaid taxes, plus penalties and interest, exceed $1 million.