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March 11, 2005
Los Angeles Sues for Travel Tax
The city (Los Angeles) sued the four online travel companies, alleging that Los Angeles is losing about $10 million a year in hotel taxes because of the way the sites price their trips.
Like traditional travel agents, the Web sites negotiate discount rates with hotels, then mark them up and sell them to consumers. The suit alleges that the companies charge and collect taxes based on the higher rate but pay the city's 14 percent hotel tax based on the lower rates, then pocket the difference.
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Posted on March 11, 2005 07:43 PM by Class 65.
Filed in Personal Injury Resources under class action law.
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