Lodging Taxes are about to change in the state of Georgia.
On April 21, Georgia State Governor Brian Kemp signed House Bill 317 into law. Companies in the business of short-term home rentals will now have to pay tax fees similar to those of hotels according to the new law. Short-term home rentals are described as staying 30 days or less. Several hotels and other establishments of the like have complained over the years that Airbnb owners have been able to curb certain tax fees that are unavoidable for them, which many see to be unfair.
Taxes have of course always been present for Airbnb just like everyone else. The big difference that this new law has put into effect is twofold. First, taxes are to be collected on a more localized scale. Airbnb lodging taxes are to be submitted to the local government authority as opposed to paying directly to the state level which is what has been done in the past. Secondly, this is a tax aimed primarily at those operating on a business-level scale. For example, maybe there is a group of people renting out multiple properties owned by themselves or by others, essentially providing the same sort of service as a hotel would. This group would be considered a company and could easily be policed by the local government body instead of by the state . Speaking plainly for those living here in Dade County and North GA, the new law directs that collectors of Airbnb funds, be they a company or an individual, are now to submit their tax dollars to the local county government. The new law is expected to generate roughly $17 million for the state in the year 2022 and will take effect July 1st.