By Mike Dunn

PHILADELPHIA (CBS) – The Nutter Administration has not yet decided whether to appeal a judge’s ruling in favor of the online travel agency Expedia. 

In a case that has dragged on for several years, a Common Pleas judge ruled that the city cannot tax Expedia for hotel rooms based on what the customer pays. Instead, the service can continue to pay taxes based on what it spends when it reserves multiple rooms at a discount.

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Jack Ferguson, chief of the city’s Convention and Visitors Bureau, says these kinds of cases have cropped up across the country, “It’s nationwide, and a lot of municipalities have been looking at this for a long time. Some courts have ruled in favor of the travel companies, in other cases they haven’t been in favor of the travel companies.”

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The city had sued not just Expedia but other online agencies. At issue is millions of dollars of potential tax revenue that Ferguson says would go to the Convention Center and to promote local tourism. A spokesman for the mayor says the Administration is still reviewing the ruling.

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Reported by Mike Dunn, KYW Newsradio