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Travel Sites Sued for Collecting 'Taxes' and Keeping Them

CNET reports that Los Angeles is suing hotel e-commerce sites for paying taxes on only their wholesale costs of the rooms, rather than on the retail prices they charge web buyers. Priceline, Expedia and Orbitz are all on the hook for failing to pass along all of the 14 percent tax that they collect from buyers on to the City of Angels. LA is hoping to make the suit a class action, which could involve hundreds of U.S. municipalities and states.

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