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.