Perhaps it was prescient not to sue travel sites after all
From Las Vegas Sun | 2010-02-09 09:05:12
<div><p> With all the money problems besetting Clark County — it will be up to $200 million short in the coming fiscal year — are commissioners regretting their decision not to take legal action against online travel agencies for unpaid occupancy taxes?</p><p>They could be, but recent legal decisions in other states indicate that if they had pursued that revenue in court, they might have lost.</p><p>In late January, a Houston District Court judge issued a summary judgment against the city, dismissing a case arguing that online travel companies had not paid enough in occupancy taxes. The summary judgment indicates the judge didnÕt find enough evidence to let the case proceed to trial.</p><p>And a Los Angeles Superior Court judge this month overturned a high-profile case in which Anaheim won a $21 million tax assessment against Priceline, Expedia, Travelocity and Orbitz. The judge ruled online companies are not liable for hotel occupancy taxes because they Òcannot be found to be hotel Ôoperators.Õ Ó</p><p>That reasoning is similar to a 2005 opinion by the Nevada Tax Commission. The opinion, in response to an online travel agencyÕs inquiry, said an online company Òneither operates a hotel nor licenses hotel accommodations, and therefore has no statutory obligation to collectÓ the tax.</p><p>In November, local lawyers who proposed suing on behalf of the county tried to convince commissioners that online tourism companies owed room taxes. A company such as Orbitz pays taxes on hotel rooms they purchase wholesale from hoteliers, but not on the marked-up prices they charge when they sell those rooms to online customers.</p><p>The attorneys claimed the county might be owed as much as $500 million.</p><p>Commissioners overwhelmingly decided against suing because they didnÕt want to jeopardize the Las Vegas tourism industryÕs relationship with online companies, which help bring tourists here.</p><p>Have things gotten so bad that Clark County canÕt staff new fire stations?</p><p>A reader asked the Sun that question after reading a story on Foxnews.com. The Feb. 4 story, ÒMillions in Stimulus Spending Being Doled Out for Questionable Jobs,Ó states: ÒIn Nevada, $2 million in stimulus money built a new fire station, but because of budget cuts, the county canÕt afford to hire firefighters to work there.Ó</p><p>The truth is, Clark County hasnÕt used any stimulus funding to build fire stations and none of its fire stations is unstaffed, said Jennifer Knight, a county spokeswoman. The Fox News story didnÕt specify the county, and Nevada has 17 of them, if you count Carson City.</p><p>Washoe County received a $2 million stimulus grant to build a fire station last year. Now that Northern Nevada county, which laid off 12 firefighters in January, is considering merging its city and county fire services to create enough efficiencies to staff its stations.</p><p>What is happening to the firefighters here?</p><p>Not much, so far. The Clark County firefighters union offered concessions last year that the county rejected as no concession at all, so they received all of the cost-of-living and other raises in their contract.</p><p>Negotiations on a new contract begin soon. The county will present figures showing the average county firefighter earned about $200,000 last fiscal year, including overtime.</p><p>The union will say their overtime and compensation wouldnÕt be so high if the county hired more firefighters.</p><p>And was about Metro? Is it still planning on 5 percent budget cuts, as reported in the Sun recently?</p><p>The exact size of the cuts isnÕt yet known.</p><p>But in an unprecedented move by a local sheriff — and a politically savvy one, considering he is up for re-election — Sheriff Doug Gillespie is holding town-hall meetings to discuss MetroÕs budget and Òreassure the public that despite pending budget cuts, the department remains committed to keeping officers on the street.Ó</p><p>The first meeting is at 6 p.m. Tuesday in the theater of Faith Lutheran Jr./Sr. High School, 2015 S. Hualapai Way. The second is at 6 p.m. Feb. 22 in the cafe of Sierra Vista High School, 8100 W. Robindale Road. The final meeting is at 6 p.m. Feb. 25 in the concert hall of Whitney Library, 5175 E. Tropicana Avenue.</p><p>Quote of the Week:</p><p>ÒNeighborhoods do go down quickly in Las Vegas, donÕt they?Ó</p><p>James Howard, Clark County Board of Equalization chairman, to Michele Burke, who had asked for a devaluation of her property on Clybourn Court. She said what she believes to be increased gang activity in the area has hurt her homeÕs value. She received a $2,500 reduction.</p><p>Joe Schoenmann can be reached at</p><p>455-6175 or at joe.schoenmann</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68737696&bid=informcom" /></div><div id="copyright"><div>
Copyright 2010 <a href="http://lasvegassun.com">Las Vegas Sun</a></div></div>
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