LA Checks Out Online Hotel Bookers

The Los Angeles Business Journal reports that Los Angeles City Attorney Rocky Delgadillo has filed suit against a dozen hotel booking service Web sites including Hotels.com, Priceline.com and Travelocity.com, alleging they’ve failed to pay as much as $10 million a year in occupancy taxes to the city.

In a lawsuit filed Tuesday in Los Angeles Superior Court, the city claims online hotel operators are collecting taxes and fees from hotels guests – but are not passing the full amount through to the city.

Let's hope the booking services pay up as a percentage of that money would go into the “Arts and Cultural Facilities and Services Trust Fund” which receives 1% of the city's hotel/motel tax receipts.