:: Travel Weekly ::
Update: "Web wholesalers and retailers have encountered problems with tax authorities in several jurisdictions and are negotiating with some, but the Los Angeles case is believed to be the first one to land in court.
“This challenges the opacity of the way fees are levied right now,” said Henry Harteveldt, Forrester Research’s vice president of travel research, referring to the bundling of taxes and fees.
The end result, he said, may be that “the intermediary will be required to list taxes as a line item and fees as another -- and that will mean that the fees will have to come down.”
Online agencies are aware of the dimensions of their potential tax liabilities. InterActiveCorp, Sabre and Orbitz have reserves to deal with the problem. "
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