HB541 Alabama 2016 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ken Johnson
Republican
Session: Regular Session 2016
Title: Lodging tax, transient defined for purposes of determining whether tax applies, Sec. 40-26-1 am'd.
Summary: HB541 defines 'transient' for lodging tax purposes and requires the entity that collects rental charges to remit the tax to the Department of Revenue, with regional rates and new exemptions.
What This Bill Does
It would amend the lodging tax by defining 'transient' and making the charging entity responsible for collecting and remitting the tax. It sets the tax rate at 5% in the mountain lakes region counties and 4% in all other counties, applying to charges for rooms and related services. It also creates several exemptions (e.g., long stays of 180 days or more, certain nonprofit and privately operated camps, specific residential leaseholds, and corporate relocation/hiring scenarios) and requires corporations seeking exemptions to obtain a certificate and pay directly to the provider; overpayments follow existing law and the act becomes effective after a specified delay.

Who It Affects
Lodging businesses (hotels, motels, inns, etc.) that would be required to collect the lodging tax from guests and remit it to the Department of Revenue.
Guests or transients paying for lodging, who would be taxed at 5% in the mountain lakes region counties and 4% elsewhere.
Corporations relocating or hiring employees, which may qualify for an exemption if they obtain a certificate and pay lodging costs directly to the provider.
Nonprofit organizations operating certain camps and privately operated camps serving youth, as well as eligible long-term stays (180 days or more) and certain residential lease arrangements, which may be exempt under the bill.
Tax administrators and businesses affected by exemptions and certificate requirements, who would handle exemption processes and ensure compliance.

Key Provisions
Defines 'transient' for purposes of the lodging tax in Section 40-26-1.
Imposes lodging tax rates: 5% in the mountain lakes region counties (specific list) and 4% in all other counties, on charges for lodging and related services.
Tax collection responsibility is placed on the entity charging for lodging, with remittance to the Department of Revenue.
Provides exemptions for: (i) stays of 180 continuous days or more; (ii) certain nonprofit or privately operated camps; (iii) residential real estate leaseholds; (iv) corporate-funded lodging for hiring/training/relocation with a certificate of exemption, paid directly by the corporation.
Requires corporations seeking exemption to apply for and receive a certificate of exemption, which must be presented to the renter/provider; reimbursements to employees do not qualify for exemption.
Addresses overpayments under existing refund provisions (Section 40-1-44).
Repeals conflicting laws and sets the act to become effective on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation