Beginning July 1, 2021, owners of certain short-term rentals must begin paying hotel taxes under House Bill 317, which was signed into law by Governor Kemp last month. The law requires that home rental companies, such as Airbnb and VRBO, collect Georgia’s $5-per-night lodging tax as well as local excise taxes.
House Bill 317 imposes the $5 fee on all lodging facilities and rooms except those that do not provide shelter and extended-stay rentals (30+ days). The costs will be passed on to renters in their bills.
Lodging Tax Expanded
In short, House Bill 317 revised the state definition of “innkeeper” (used to calculate lodging excise taxes) to include Airbnb and other marketplace-based innkeepers. It adds a $5 nightly tax to short term rentals in addition to the sales tax, and Fannin County and City of Blue Ridge lodging taxes already levied. The county’s tax rate is currently 6%, while rentals within the city limits pay 8%.
Total lodging taxes for all local rentals are now:
- 7% Sales Tax
- 6% Fannin County Lodging Tax
- 2% City of Blue Ridge Lodging Tax (if applicable)
- $5-per-night Hotel Tax
- More Money for Local Spending
- The lodging tax is projected to raise $17 million for the state in 2022, while local governments could receive $20 to $30 million annually. In Fannin County, the hotel/motel tax is split 50/50 with the Chamber of Commerce with the county funds spent mostly on public safety projects. The Chamber’s 50% is spent on marketing and tourism, which helped generate $273.3 million in direct visitor spending in 2020, including $65.6 million in lodging.
If you need assistance computing or filing lodging and excise taxes, please contact us at (706) 632-7850. We can help you update your systems for the new tax rates.