Going after hotel taxes | Arkansas Blog

Friday, September 25, 2009

Going after hotel taxes

Posted By on Fri, Sep 25, 2009 at 2:23 PM

The Pine Bluff Advertising and Promotion Commission and Jefferson County have filed a lawsuit claiming that on-line hotel booking services (Travelocity, Orbitz, Expedia, etc.) are charging customers local sales taxes at the rate for which the room is rented, but remitting only taxes on the lower room charge the travel agencies have negotiated with hotel operators. The suit seeks to be a class action for all local governments in Arkansas to recoup unpaid hotel taxes. If successful, it could be a big sum.

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