SB125 Alabama 2017 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2017

Title

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

Summary

SB125 defines 'transient' for Alabama's occupancy tax and clarifies that residential real estate leasehold agreements are exempt from the tax.

What This Bill Does

Defines the term 'transient' for the occupancy tax and maintains the current tax structure, applying 5% in the Mountain Lakes counties and 4% in all other counties to room rentals for transients. Clarifies that residential real estate agreements that create leaseholds in real property (under Chapter 9A Title 35) are exempt from the occupancy tax. Keeps existing exemptions for long stays (180+ days) and for nonprofit or privately operated camps and centers serving children or nonprofit groups. Effective date: the act takes effect on the first day of the third month after it becomes law.

Who It Affects

• Lodging and rental operators (hotels, motels, inns, and similar places) that rent rooms to transients in Alabama; they would continue collecting the occupancy tax at 5% in the Mountain Lakes region or 4% elsewhere.
• Property owners or landlords who enter into residential real estate agreements that create leaseholds in real property under Chapter 9A Title 35; these leaseholds would be exempt from the occupancy tax.

Key Provisions

• Defines 'transient' for purposes of the occupancy tax in Chapter 40-26.
• Maintains regional tax rates: 5% in the Mountain Lakes counties and 4% in all other counties, applied to charges for rooms and related services.
• Lists exemptions, including long-term stays (180+ days), nonprofit and privately operated camps/centers serving children or nonprofit groups, and residential real estate leasehold agreements covered under Chapter 9A Title 35.
• Effective date: becomes law on the first day of the third month after passage and governor's approval.
• Repeals any laws that conflict with this act.

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