Reаd the fоllоwing аrticle, аnd chоose the BEST answer below: Fla. Supreme Court to hear counties’ case against travel websites By Morgan WatkinsStaff writer The Florida Supreme Court is taking on a case that addresses how online-based travel companies like Orbitz and Expedia should handle bed taxes — an issue that impacts the pocketbooks of Alachua County and other local governments that rely on that revenue. Alachua County is one of several Florida counties involved in this court case, which revolves around a dispute between the counties and the companies over how the latter should pay bed taxes. Online travel companies charge customers an overall price to rent a room, along with service fees, but only apply the bed tax, which is also known as a tourist-development tax, to the reduced rate they pay hotels. The counties in this case want them to apply the bed tax to the total amount they charge for a room. The state Supreme Court’s recent decision to hear the case came in the wake of lower court rulings that sided with the companies over the counties. A state appeals court ruled with the companies in February in a 2-1 decision, which fell in line with an earlier ruling from a state Circuit Court judge last year that also favored the companies. John Pricher, assistant director of Visit Gainesville, which manages tourism sales and marketing for Alachua County, said if the state Supreme Court rules in the counties’ favor it would increase the amount of revenue the counties receive in bed taxes from these online businesses. “The bottom line is we’re losing money,” Pricher said of the current payment method. He said he isn’t sure how much money Alachua County could recoup in unpaid tax revenue from previous years if the court sides with the counties, but he said the most important thing is to ensure online companies pay what they are supposed to in bed taxes moving forward. Alachua County doesn’t have the same draw for tourists that places like Orlando do, but the bed-tax dispute still has important implications for it. “For us, it still could represent quite a bit of money coming in each year that we’re not getting now,” he said. Alachua County’s bed tax amounts to 5 cents per dollar, which Pricher said is the maximum it is allowed to charge. Its bed tax revenue, which is used to promote local tourism, has seen a small but welcome percentage increase in recent years. It isn’t just that more people are traveling for leisure now that the economy has been improving, but that more people are traveling for business as well, he said. Corporate travel is becoming more significant to the county than it has been in the past. Choose the BEST answer below:
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