The Supreme Court of Georgia unanimously has affirmed a Fulton County judge’s findings that online travel companies that book hotel rooms via the Internet must pay hotel taxes on the room rates they charge their customers, not the lower rates they pay to the hotels.
But the high court also upheld the lower court ruling that the city did not have a remedy that would allow it to collect an estimated $5 million in back taxes that the travel companies owe. As a result, online travel companies will be expected to pay higher taxes only on future hotel and motel room rentals.
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