Ride-hailing companies like Uber and Lyft could be on the hook for tens of millions of dollars as a tax dispute with the state heads to court -- and customers could be charged MORE for their next ride.
The Georgia Department of Revenue has billed Uber $22.1 million for sales taxes and other charges it says the company owes. Though ride-hailing services do not pay sales taxes in Georgia, the department says they should under state law, just like their competitors in the taxi and limousine industries.
Uber disputes the department’s interpretation of the law and has appealed the bill to the Georgia Tax Tribunal, a special court that handles such disputes.
The stakes are high for ride-hailing companies, their customers and their competitors. Uber says sales tax rates average 7 percent across Georgia and are 8.9 percent in Atlanta – money that would be tacked on to each passenger’s fare.
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