HB219 Alabama 2017 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2017

Title

Occupancy tax, transient defined, leases expressly exempt from tax, Sec. 40-26-1 am'd.

Summary

HB219 defines 'transient' for Alabama's occupancy tax, clarifies exemptions for leases under the Residential Landlord and Tenant Act, and adjusts tax rates with several exemptions.

What This Bill Does

It amends the occupancy tax law to define 'transient' and to clarify that rentals governed by the Residential Landlord and Tenant Act are exempt. It sets a 5% occupancy tax in the Mountain Lakes region counties and a 4% tax in all other counties, applying to charges for rooms and related services. It lists exemptions, including long stays (180 days or more), nonprofit camp or conference facilities, privately operated camps for nonprofit programs, and transactions covered by the Alabama Uniform Residential Landlord and Tenant Act, with other existing exemptions referenced in the law.

Who It Affects

• Lodging providers (hotels, motels, inns, etc.) in Alabama, especially in the Mountain Lakes region counties, as they would collect and remit the new or adjusted occupancy tax.
• Guests/transients who rent rooms or accommodations, who would be subject to the new 5% or 4% tax unless exempt.

Key Provisions

• Defines 'transient' for purposes of the occupancy tax as any person or company renting or furnishing one or more rooms or similar accommodations.
• Tax rates: 5% in the Mountain Lakes region counties (list includes Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, Winston) and 4% in all other counties, including charges for use or rental of personal property and services.
• Exemption to the tax for leases and rentals governed by the Alabama Uniform Residential Landlord and Tenant Act (Chapter 9A of Title 35).
• Other exemptions include: stays of 180 continuous days or more; nonprofit-operated camps, conference centers, or similar facilities; privately operated camps or centers that provide lodging and programs exclusively for the benefit of children, students, or members/guests of nonprofit organizations; and rentals taxed under Division 1 of Article 1 of Chapter 23 (title-specific reference).
• Effective date: becomes law on the first day of the third month after passage and governor approval.
• This act repeals laws or parts of laws that conflict with its provisions.

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