The Valley Industry and Commerce Association on Wednesday called for the withdrawal of Los Angeles’ pending class-action lawsuit and ordinance meant to crack down on Internet hotel booking agencies the city accuses of evading occupancy taxes.

“The city’s new ordinance and class-action lawsuit creates an incentive for online intermediaries, as well as consumers, to book hotels outside the City of Los Angeles,” VICA Local Issues Co-Chair David Adelman said in a statement.

The suit, filed last month in Los Angeles Superior Court, seeks compensation for transient occupancy taxes from a dozen online hotel booking services, including Hotels.com and Expedia, dating to 1999. The city claims the online services do not pass on all of the 14 percent occupancy tax they collect.