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Lawmakers are asking the state Attorney General and Department of Revenue to close an alleged loophole and force online travel companies to pay taxes on service fees.

Right now if Expedia, hotels.com or other online companies buy a hotel room, they pay sales tax. But when they resale the room at a higher rate, they don’t pay the state a sales tax on the new price. They say they don’t have to because they’re charging customers a service fee, not selling a room. Representative Rick Kriseman says that’s illegal.

“What we are talking about is the failure of a particular group to pay the taxes that are owed, despite the fact that they are collecting the taxes. That is an important point they are collecting it, they just aren’t paying it all in,” said Kriseman.

Kriseman says the state is losing 500 million dollars a year to online travel companies. He says the money would go far in helping to fund education and other state services.