Warrenville, Oakbrook Terrace and Rockford are suing more than a dozen companies, including Travelocity, Expedia and Priceline.
The villages of Bedford Park, Oak Lawn, Orland Hills and Willowbrook are also part of the litigation.
The lawyers involved say the travel companies fail to pay or remit taxes on the amount customers pay to stay in hotel rooms they sell.
"What the government wants is to get their full taxes paid," said Tom Prindable of Clifford Law Offices. "We're here to here to clear the gap of the taxes that were not paid."
ABC7 was unable to reach Travelocity or Expedia for a comment.
Priceline says it is not commenting on the lawsuit.