face2face [1]

Atlanta to sue Internet sites

First it was Los Angeles, then Bellingham, Wash., and San Diego [3]. Now the move to stop Internet travel sites from charging customers for taxes the city never sees is moving to Atlanta [4]. From The Atlantic Journal-Constitution:

    According to the suit, the companies buy blocks of rooms at a cost lower than what they charge customers, who book services on their sites. The suit said the sites charge customers a 7 percent tax based on a higher room rate but only pass along to the city the tax that would apply to the lower room rates they get by buying rooms in bulk.

I haven't heard much from the other side of the story yet, but I'm sure it's coming.