NORTH MYRTLE BEACH, SC (WBTW) – North Myrtle Beach City Council will consider a resolution Monday night to join a lawsuit against online travel companies to recover business license fees.
The resolution to initiate litigation aims to collect unpaid accommodations taxes and hospitality fees, according to the City of North Myrtle Beach.
The proposed resolution claims the online travel companies enter into contracts to buy rooms in North Myrtle Beach at negotiated rates and then sell them at a higher price. The city says the websites only remitted taxes based on the lower negotiated rates.
The resolution alleges the online travel companies kept the difference between the taxes charged and the amount remitted to the hotels.
The issue is not new for the City of North Myrtle Beach. It previously filed a lawsuit against online travel companies to recover unpaid taxes and received a $192,600 settlement as a result.
If approved, the City of North Myrtle Beach would join the City of Charleston, North Charleston, Myrtle Beach, Columbia and the Town of Hilton Head.
