HB594 Alabama 2017 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: John F. Knight Jr
Democrat
Session: Regular Session 2017
Title: Montgomery Co., rental tax, co. commission authorized to levy and collect, exemptions, administration and enforcement of rental tax
Summary: Montgomery County may levy and collect a rental tax on renters of tangible personal property, with defined rates, exemptions, and enforcement rules.
What This Bill Does
The bill authorizes the county to impose a rental tax on leasing or renting tangible personal property, with rates up to 0.75% for certain vehicles and up to 2% for other property, plus exemptions. The tax is treated as a direct tax on the lessee, collected by the lessor or vendor, and administered and enforced similarly to the state rental tax. Proceeds can fund county activities and debt, with collection options including the county, the state Department of Revenue, or a private collection agency, and the tax is secured by liens and other enforcement tools.

Who It Affects
Lessees/Renters in Montgomery County: will pay the rental tax as part of rental costs, with rates depending on the type of property rented, and some exemptions apply.
Lessor/Vendor businesses in Montgomery County: must collect the tax from renters, maintain records, file returns, and may incur collection costs or use state/private agencies for collection.

Key Provisions
Authority and rates: The county may levy a rental tax on leasing or renting tangible personal property, with rates up to 0.75% for automotive vehicles, truck trailers, and similar items, and up to 2% for all other transactions, plus exemptions such as for rental passenger vehicles and rental trucks.
Administration and use of proceeds: The tax is administered and collected in a manner similar to the state rental tax, may be collected by the county, the state Department of Revenue, or a private agency, and proceeds may be used for county purposes including debt financing; the act provides liens, records requirements, and protections against improper gain by public officials.

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