Los Angeles has sued Priceline, Expedia and other Internet travel sites over a practice the city says costs it millions in hotel taxes. The suit says the sites pay taxes only on their discount purchasing rates, but consumers pay the 14 percent city tax on the higher online price -- with the companies pocketing the difference. "The Web sites can't have it both ways," said a city spokeswoman. "They can't charge consumers taxes based on retail price but give back to the city only part of the money."
January 07, 2005 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
The city of Los Angeles has sued Priceline, Expedia and other Internet travel sites over a practice the city says costs it millions in lost hotel room taxes.
The lawsuit says the companies improperly pay taxes only on the discount rates they get for buying in bulk, but consumers pay the 14 percent city tax on the higher online price. The companies pocket the difference, according to the lawsuit filed last week in Superior Court.
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