Interactive Travel Services Association (ITSA) Executive Director Art Sackler issued the following statement in response to the lawsuit filed by the City Attorney of Los Angeles against online travel companies to recover hotel occupancy taxes:

The city attorney`s lawsuit is wrong. The claim that ITSA members do not remit collected taxes is false. The city`s hotel tax does not apply to online travel companies which are not hotel operators and do not collect rent. These companies provide valuable services to assist consumers with booking hotel rooms.

The city is trying to impose a new tax on internet services that is adverse to consumers. Under California law, any new tax must be approved by voter referendum. This one was not. Adding a new consumer tax is not smart tourism policy. By increasing the amounts consumers must pay, tourism and tax revenues will likely decline.

The industry believes the lawsuit is without merit and will defend itself vigorously.