The California Supreme Court has agreed to review an appellate ruling that Priceline, Expedia, Travelocity and similar "online travel companies" (OTCs) did not have to pay San Diego hotel tax on income they derived using a "merchant model" approach to marketing local hotel rooms. The Second District ruled that if an OTC contracts with a hotel for a block of rooms at a fixed wholesale rate, and then retails them to guests at higher prices, then city hotel tax is due only on the wholesale rate, not the difference the OTC receives. >>read more