The Little Rock City Board will soon consider whether to join other cities in class action litigation over the amount of local sales taxes paid to companies that do Internet hotel bookings.
A case begun by Pine Bluff has so far prevailed in behalf of class action plaintiffs on the argument that bookers like Hotels.com are not paying sufficient sales taxes on rooms. Rather than paying on the amount paid by the hotel guests, the booking services want to pay on only the discounted price by which they obtained rooms for rental.
Here’s an explanation of the issue before the city board at an agenda session this week. If the plaintiffs prevail, the city would get a share of any judgment won by the Thrash law firm in the litigation. Here’s a report on the decision at the circuit court level. There’s a good way to go before this is over.