Expedia, others to pay millions for allegedly dodging biz tax. Could Airbnb be next?

Online travel companies, including Expedia, Priceline and Travelocity, agreed to settle a four-year legal dispute brought by the City of Myrtle Beach, Hilton Head and Charleston. If all the local governments approve the settlement, the companies will pay more than $4 million for allegedly renting hotel rooms paying business license fees.

The suit, which involves eight South Carolina cities and counties, seeks the full amount of business license fees lost during the time the companies allegedly rented rooms without a license. Myrtle Beach city council members voted Tuesday to approve the deal, but it still needs approval from the other local governments.

This isn't the last step for Myrtle Beach officials. The city is now looking into how Airbnb, a home rental website, pays the A-tax and business license fees.

"We are currently looking at Airbnb, their requirements for accommodations tax as well and at some point I'm probably going to talk with you about that," Myrtle Beach City Attorney Tom Ellenburg said. "Right now we're not ready yet."

As for the settlement, the travel companies did not admit to breaking the law.

"This settlement reflects payment of that which was owed to us for past, and contains the requirement that they get the business licenses," Myrtle Beach City Attorney Tom Ellenburg said during a city council meeting. "This would conclude our dispute with them."

This isn't the first time the city has filed a lawsuit against the travel companies.

In 2011, the City of Myrtle Beach won a lawsuit regarding the accommodations tax, money used to complete capital projects for tourists.

Horry County and the City of North Myrtle Beach were also involved in the Charleston County suit, which focused on 14 travel websites that, the suit alleges, did not pay the taxes and fees.

"In short term it generates a kind of need to have the support mechanisms in place — trash, water, sewer, roads, police, fire, ambulance," Ellenburg said. "And the accommodations tax, as well as the business license, are necessary components for us to fund those. The citizens shouldn't have to bear the brunt."

This story was originally published May 8, 2018 at 2:32 PM with the headline "Expedia, others to pay millions for allegedly dodging biz tax. Could Airbnb be next?."