The state of Georgia is trying to collect $22 million in sales taxes from Uber.
The company contends it doesn’t owe the taxes because Georgia doesn’t have a law taxing rideshare programs. But that hasn't stopped the Georgia Department of Revenue from billing Uber for more $22 million in uncollected sales and other taxes dating to 2015.
If the state is successful, Uber could start passing state sales tax costs on to customers. It “would force consumers in the state to pay the highest tax in the country on ridesharing,” Uber told 11Alive in a statement.
A spokesman for the Department of Revenue wouldn't answer questions about it, citing litigation. Uber is challenging the collection. Uber driver Ty Kimble said they should.
"If they get taxed, then we get taxed on the back end," she said. "So, I don’t think that’s a good idea."
At the Capitol, lawmakers have toyed with passing a new sales tax on rideshare services. But the legislature has never passed a law requiring rideshare services to collect state and local sales taxes – despite some strong sentiment in favor of taxing Uber and Lyft.
Taxi drivers, in particular, think the government should impose the same rules required of the taxi industry, which currently pays sales taxes.
"(If an Uber driver) makes money, he has to pay too," said Ritho Renesca, a taxi driver picking up a passenger at Hartsfield Jackson Airport. "We pay. He has to pay."
Uber is challenging the tax bill in an appeals court called the Georgia Tax Tribunal. If the state prevails in that court, the door would open for Georgia rideshare services to collect sales taxes.