Atlanta to sue Internet sites


First it was Los Angeles, then Bellingham, Wash., and San Diego. Now the move to stop Internet travel sites from charging customers for taxes the city never sees is moving to Atlanta. 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.

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