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Closing Online Travel Site Loophole

creative commons

ANNAPOLIS, Md. (AP) - A Senate committee is backing a bill to close a tax loophole for third-party travel websites.

The committee voted 9-4 on Wednesday in favor of the legislation, which ensures booking companies such as Expedia and Travelocity pay Maryland the same amount of sales tax on that a customer would pay if they did not purchase a discounted hotel room from the travel site.

Sen. Richard Madaleno, D-Montgomery County, is the sponsor of the bill. According to the state's Department of Business and Economic Development, tourists spent more than $15 billion in Maryland in 2014. The industry is also the 10th largest private sector employer in the state.

The bill now heads to the full Senate for consideration.

Don Rush is the News Director and Senior Producer of News and Public Affairs at Delmarva Public Media. An award-winning journalist, Don reports major local issues of the day, from sea level rise, to urban development, to the changing demographics of Delmarva.