Tour Vista, an Online Travel Company, Buys Blocks of Rooms

Tour Vista, an online travel company, buys blocks of rooms from Skyview Towers, a hotel in River City, at a wholesale rate.Tour Vista resells the rooms to consumers at a retail rate.In recent efforts to collect taxes from e-commerce, some cities claim that hotel occupancy taxes should be assessed and remitted directly to the cities based on

A) the dire financial straits of the cities during the latest recession.
B) the retail rates of the rooms.
C) the states of residency of the consumers who reserve the rooms.
D) the wholesale rates of the rooms.