Hotel tax battle heats up

07/30/2010 | NPR.org

A court victory for Atlanta last week highlighted a growing battle between cities, hotels and online travel companies over whether online booking agencies should be taxed on the service they provide customers when they help them find and reserve a room. Online companies such as Expedia and Travelocity say no -- because they don't own the hotels -- but city officials say exempting them from taxes will set a dangerous precedent that could allow other online businesses to follow suit. AHLA representatives worry that exempting online companies from these taxes would give them an unfair edge and could end up burdening hotel owners.

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