June 08, 2006

It looks like we're taking one more step towards throttling down internet trade with taxes-- and opening one more class action Pandora's Box. Liz Flynn, reporting for Savannah's WTOC, informs us that

...cities like Savannah are losing hundreds of thousands of dollars because of travel websites. Now many Georgia counties and cities are filing a lawsuit, trying to get some of that lost tax revenue back.

The idea being that, because internet travel retailers buy up hotel rooms wholesale and don't pay the same level of taxes on them that the end users of those rooms do, the travel companies owe the state. Big time. Read the whole story here.