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OnLine Travel Industry Sued by Tax
Authorities
KBL represents the City of Los Angeles in a Lawsuit
against the major online travel sellers. The City's Class Action seeks recovery
from the online Internet travel sellers for occupancy tax collected from
consumers but not paid to the cities. The City contends the online sellers
collect Occupancy Tax on the retail rate but remit the Tax to the municpalities
at the wholesale rate. In addition to Los Angeles, KBL has been retained by the
City of San Diego for whom an individual suit has been filed. KBL has also
recently been retained by the citys of Anaheim and West Hollywood. The case is
presently pending in the Los Angeles Superior Court complex litigation
department at Central Civil West.
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