Philadelphia sue online travel services for "missing" hotel tax

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Source Title:
Online travel sites fail to pay full hotel tax
Story Text:

Interesting story that WMW are running in supporters form (so my link is not to there, but to Philadelphia Inquirer that runs the story). Nub of the story is that the city thinks they are losing tax to on-line booking companies and are suing Expedia, Orbitz, Priceline and Travelocity. Don't think that have a snowflakes chance in hell of winning, but if they did the repercussions across the web would be fairly large. Difficult enough as it is making money on hotel bookings!

.. the city thinks the services should be collecting $7 in tax on a room that a hotel customer pays $100 for. But the services contend that they are required to pay only $6.30, or 7 percent of the discounted rate of $90 that they paid the hotel.

Its being done on one of those no win, no fee deals so loved in the USA

The city has hired a private local law firm, Berger & Montague P.C., to pursue the litigation. The law firm brought the matter to the city's attention, through City Councilman Frank Rizzo, Diaz said. As payment, it will receive 30 percent of the money collected for the city.

Comments

thanks cw, this one almost

thanks cw, this one almost escaped me!

Nice story, what morons...

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