Four Georgia municipalities are suing AirBNB, claiming the short-stay rental giant has failed to collect and remit taxes owed to the municipalities.
In a complaint filed Jan. 31 in federal court in Rome, Ga., the city of Rome, Hart County, the city of Cartersville and the city of Tybee Island say they have repeatedly demanded that AirBNB collect and remit occupancy taxes, but the company has refused.
The governments assert that AirBNB is thus vioating state and local laws. The governments are seeking a court order forcing AirBNB to collect the taxes. The complaint does not state the amount the municipalities believe they are owed.
The governments are asking the court to certify the lawsuit as a class action, meaning that if approved by the court it would represent a state-wide class of all Georgia cities, countiesand governments who have enacted Occupancy Taxes on lodging.
"This action is one of central importance to Plaintiffs and to the integrity of the tax laws of the State of Georgia, including the applicable local ordinances at issue in this case," the governments contend.
Atlanta Business Chronicle has reached out to AirBNB for comment. Read the full complaint here.