Originally Posted by DevilBucsFlyer

I disagree. I don't think Los Angeles has any right to that money whatsoever. If the hotel, that is within the taxing authority of L.A., sells the room to Travelocity for $50, then L.A. should only receive tax on the $50. That's the amount of revenue that was recognized by the hotel in L.A.

Personally, if I agree to pay $100 "All-in" for a hotel room through Travelocity, I don't really care if its $100 with no tax or $80 with $20 tax. My decision is based upon the $100 I have to part with.

But, if anyone has a right to that money (other than Travelocity), its the individual who earned it and spent it. I don't see how L.A. has any right to that money whatsoever. There was never any revenue in L.A. (beyond the $50) on which L.A. can assess the tax.

Now, if Travelocity is located in L.A., then I could see the city's argument. In that case, a business located in L.A. would be selling a hotel room and generating revenue in L.A. - no different than what L.A. hotels do everyday.