Last month Mayor White tried to convince City Council to approve his idea to go after online travel websites for underpaid hotel occupancy taxes. Controller Annise Parker and Council expressed skepticism that the city would be successful and the mayor’s new revenue stream was (temporarily) tabled.
Today Charles Kuffner highlights the news that San Antonio beat Houston to the courthouse, filing suit against several online travel sites (although Kuff doesn’t mention Mayor White’s attempt to do the same):
Three Dallas-Fort Worth Web-based travel firms are among several that are being sued for millions of dollars on the grounds that they didn’t properly remit taxes for hotel stays arranged through the companies.
Dallas-based Hotels.com and Travelweb and Southlake-based Travelocity.com, a subsidiary of Sabre Holdings Corp. (NYSE: TSG), were among 19 firms that allegedly underpaid hotel occupancy taxes in violation of state and local tax laws, according to a press release from the city of San Antonio.
[snip]
The suit was filed in federal district court in San Antonio Monday morning, said Steve Wolens, of the Dallas office of Baron & Budd P.C., who is working with the city of San Antonio.
Can Houston be far behind?
