SB241 Alabama 2016 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2016

Title

Taxation, transient occupancy tax, definitions, application clarified, Sec. 40-26-1 am'd.

Summary

SB241 adds formal definitions to Alabama's transient occupancy tax and clarifies how the tax is applied by the Department of Revenue.

What This Bill Does

It adds a section in the transient occupancy tax law to define terms like accommodation, transient, renting, taxpayer, department, and commissioner. This helps determine who owes the tax and what counts as taxable lodging. It also confirms the tax structure described in existing law, including the 5% rate in the mountain lakes counties and 4% in other counties, with the tax due on the total rental charge. The act becomes effective immediately after passage, and conflicting laws are repealed.

Who It Affects

• Taxpayers and businesses that rent or furnish transient accommodations (hotels, motels, etc.) in Alabama, because the new definitions clarify what counts as accommodation, renting, and who is liable for the tax.
• Alabama Department of Revenue and local governments responsible for administering and enforcing the tax, who will use the definitions to interpret and apply the law.

Key Provisions

• Adds definitions for terms used in the transient occupancy tax chapter, including accommodation, renting or furnishing, transient, taxpayer, department, and commissioner.
• Clarifies the Department of Revenue’s policy and interpretation of the law, maintains existing tax rates and exemptions, and establishes immediate effectiveness with repeal of conflicting laws.

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