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Hotel operators sell rooms at discounted rates to online travel companies, and the companies then charge consumers additional fees.
By law, online companies pay taxes on the price paid for a room, but they are not required to take into account the higher price they charge consumers, said City Council member Tim McCosker, a supporter of Measure TC.
The city’s transient occupancy tax, also known as the bed or hotel tax, is 14% of the room rate. According to city estimates, if the TC is passed, $5 million per year could be raised for sidewalk and street repairs, parks and other essential services.
