Airbnb tax signed into law in Georgia by Gov. Kemp

Short-term home rental companies such as Airbnb will begin paying hotel taxes in Georgia on July 1. AJC FILE
Short-term home rental companies such as Airbnb will begin paying hotel taxes in Georgia on July 1. AJC FILE

Short-term home rental companies, such as Airbnb and VRBO, will have to pay hotel taxes under a bill Gov. Brian Kemp signed into law.

The law makes home rental companies collect Georgia’s $5-per-night lodging tax and local excise taxes, which can reach 8%. The costs will be passed on to renters on their bills.

The measure, which Kemp signed last week, is the latest effort to tax online companies that do business in Georgia, building on laws passed in recent years that tax Uber, Amazon and other internet retailers.

Traditional hotels, taxis and retailers supported taxing their internet competitors, and local governments sought the revenue that the taxes will generate.

The lodging tax is projected to raise $17 million for the state in fiscal 2022, according to a fiscal note produced by the state auditor. Local governments could receive a combined $20 million to $30 million annually from hotel excise taxes, according to the Association County Commissioners of Georgia.

Extended-stay rentals, which last more than 30 days, are exempt from the $5-per-night lodging tax.

Kemp signed the lodging tax legislation, House Bill 317, into law April 21. It goes into effect July 1.

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