Here’s some good information on how resellers are not paying taxes while we consumers are overpaying.
| Re-sellers buy blocks of hotel rooms (airlines seats, tickets, etc.) at a low price and package them for re-sale to us consumers at a higher price. The difference in cost represents their profit. The consumer is charged appropriate taxes based on our purchase price. |
| The underlying issue (behind all the procedural wrangling) has to do with a common re-selling practice. In this case, a number of online travel firms, including some of the giants in the online travel industry, have adopted a practice on remitting hotel occupancy taxes that is at odds with how the city of Atlanta believes taxes should be charged and remitted. |
| The travel companies have been remitting taxes based on the price the company paid, not the price charged and paid by the consumer, claiming that the difference is a service fee/charge and NOT taxes. |
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airlines, city of atlanta, consumers, fee charge, giants, hotel occupancy, hotel rooms, odds, paying taxes, resellers, taxes travel, travel companies, travel firms, travel industry, Travel Info
Tags: airlines, city of atlanta, consumers, fee charge, giants, hotel occupancy, hotel rooms, odds, paying taxes, resellers, taxes travel, travel companies, travel firms, travel industry
This entry was posted
on Friday, October 10th, 2008 at 1:15 pm and is filed under Travel Info.
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