Hotel tax increase headed for ballot, but many don't pay

Ads for luxurious overnight stays and property management in the Napa Valley abound. Many of them the rooms go for $1,000 a night and more -- and many do not collect or pay a transient occupancy tax.

This underground hospitality industry in the wine country could be costing financially strapped local governments millions. And it's going on right under the noses of public officials in the midst of one of the nation's tourist meccas.