It’s a question that may surface as both Shreveport and Bossier City officials assess the financial impact of COVID-19 impact on city revenues.
Baton Rouge Mayor Sharon Weston Broome wants to hire outside attorneys to pursue online travel companies for unpaid sales taxes owned to the city-parish.
In 2016, the Louisiana Department of Revenue and the City of New Orleans sued Priceline, Orbitz, Expedia, Hotels.com, Hotwire and Travelocity, among others , for nearly $23 million allegedly owed. As could be expected, the litigation is slow moving due to the number of defendants and the large sums sought for recovery.
The lawsuit alleges that companies contracted with hotels for a wholesale price on rooms but then charged the customers a higher retail price. However sales taxes were only paid on the wholesale price, not the retail price.
A Baton Rouge law firm has agreed to represent the Metro government on a 25% contingency basis.
Similar litigation has been filed in many cities and states.