Georgia Municipalities Sue Airbnb Over Taxes

Four Georgia municipalities are accusing Airbnb of refusing to pay taxes on short-term rentals. In a recently filed federal lawsuit, the lawsuit calls Airbnb's business practices "illegal, deceptive, unfair and unlawful." One county and three cities are seeking class-action status to include additional communities throughout the state as plaintiffs.

In Georgia, counties and cities may impose excise taxes on the short-term rental of rooms, lodgings or accommodations in their jurisdictions at rates between three and eight percent.

According to lawyers for the municipalities, Airbnb has failed and refused to comply with transient occupancy or excise taxes enforced by Rome, GA; Hart County, GA; Tybee Island, GA and Cartersville, GA. It also accuses Airbnb of intentionally evading taxes due from its short-term rental accommodations the company lists and sells.

On Feb. 10, 2015, attorneys for the municipalities named as plaintiffs in the lawsuit say they sent a letter to Airbnb demanding they collect and remit the applicable excise taxes due to them. Additional demand letters were sent to Airbnb as late as Jan. 23, 2019. According to the lawsuit, Airbnb has yet to respond to the demands.

The lawsuit seeks $5 million in damages. The attorneys for the municipalities named in the lawsuit are requesting a jury trial.

According to Airbnb's website, the company has made agreements with governments to collect and remit local taxes on behalf of hosts. The company says it calculates these taxes and collects them from guests at the time of booking. Airbnb then remits collected taxes to the applicable tax authority on the hosts' behalf.

The company includes a complete list on its website of the states and countries it has partnerships with. However, Georgia and Hawaii are not among them.

To view the lawsuit in its entirety, see below: