Title
Hotel/Motel Room Tax Legal Services Agreement
History
In late February the Village was contacted by a National Online Travel Litigation Group and asked to join an imminent class action lawsuit with other communities to enforce the Illinois Hotel Operators’ Occupation Tax Act. Presently there are more than 200 cities and counties that have sued the OnLine Travel Companies (OTC’s) for lost tax revenues. The lawsuit seeks to collect tax revenues that have not been remitted to local municipalities by certain online travel companies. Specifically, companies like Priceline, Expedia and Hotels.com who purchase rooms at lower rates and then sell them to customers at higher rates, but pay the tax on the lower amount.
At the March 4, 2013 Board meeting, tentative approval was given to join with other municipalities in the class action suit against numerous Online Travel Companies (OTCs), pending the Board’s receipt and approval of an attorney’s retainer agreement.
A Legal Service Agreement is now being presented for Board approval in order for the Village to join the National Online Litigation Groups in the class action suit.
Recommended Action/Motion
I move to approve entering into a Legal Service Agreement by and between the Village of Orland Park and Robert K. Finnell, the Bird Law Group, P.C., the Crongeyer Law Firm, P.C., the Clifford Law Offices and the law firm of Peterson Johnson & Murray Chicago, LLC in order to be a part of the National Online Litigation Groups.