SB285 Alabama 2017 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2017

Title

Lodging tax, exclusion of area not used as lodging, Sec. 40-26-1 am'd.

Summary

SB285 would exclude from the lodging tax rentals of portions of lodging facilities that are not used as temporary living quarters, and adjust how the tax applies in Alabama's mountain lakes region.

What This Bill Does

It amends Section 40-26-1 to state that rental of parts of hotels, motels, inns, and similar places that are not used as a temporary living quarter would not be subject to the lodging tax. It also sets different tax rates by region (5% in the mountain lakes counties, 4% in all other counties) and lists exemptions (long-term stays of 180 days or more, certain nonprofit and privately operated camps, and convention facilities like banquet halls and meeting rooms). The act includes that it becomes law after a specified date and repeals conflicting laws.

Who It Affects

• Lodging operators in the Alabama mountain lakes region: subject to 5% tax on charges for lodging and related services.
• Lodging operators in all other Alabama counties: subject to 4% tax on lodging charges.
• Renters or guests staying in lodging that is not used as a temporary living quarter (and spaces like convention halls or meeting rooms): not taxed.
• Long-term guests (180+ continuous days) and certain nonprofit or privately operated camps and facilities: generally exempt from lodging tax.
• Nonprofit organizations operating recreational or educational programs for children or students, and facilities serving these programs: exemptions apply.

Key Provisions

• Defines that rental of any portion of a lodging facility not used as a temporary living quarter is not subject to the lodging tax.
• Imposes a 5% lodging tax rate in the Alabama mountain lakes region counties and a 4% rate in all other counties, for charges including lodging and related services.
• Exempts from tax long-term rentals (180 continuous days or more) and lodging provided by nonprofit or privately operated camps and conference centers serving children, students, or members/guests of nonprofit organizations.
• Clarifies that convention facilities, banquet halls, and meeting rooms not used as lodging are not taxed and are treated as non-lodging spaces under the act; these spaces are not considered amusements or sales under Chapter 23.
• Repeals laws conflicting with this act and sets the effective date as the first day of the third month after passage and governor approval.

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

Subjects

Lodging Tax