SB226 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Paul Sanford
Republican
Session: Regular Session 2018
Title: Lodging tax, rooms and spaces not used for overnight accomodations, exemption, consistent with rule of Revenue Dept., Sec. 40-26-1 am'd.
Summary: SB 226 would exclude non-overnight room or space rentals from Alabama's lodging tax, aligning with department rules.
What This Bill Does
It amends the lodging tax law to remove from the tax certain rentals of rooms or spaces (like meeting rooms or spaces not regularly furnished for overnight sleeping) when the charges are separately stated and the space is used only for meetings or events. The exclusion applies only to the transient occupancy tax and not to other taxes, though a separately stated meeting-room rental can also be excluded from Chapter 23 taxes. Existing exemptions for long-term stays (180 days or more) and for nonprofit or privately operated camps/conference centers remain, and the act becomes law on the first day of the third month after approval.

Who It Affects
Lodging operators (hotels, motels, inns, tourist camps, tourist cabins, and similar facilities) who rent spaces not used for overnight sleeping, as those charges may no longer be subject to the lodging tax if the space is used exclusively for meetings or events and the charge is separately stated.
Organizations and event organizers that rent meeting spaces (ballrooms, conference rooms, etc.) and meet the separate-statement condition, potentially reducing or eliminating lodging tax on those rental charges.

Key Provisions
Excludes from the lodging tax the rental of a room or space not intended for overnight sleeping if the space is used exclusively for a meeting, conference, seminar, club meeting, private party, or similar activity and the charges are separately stated.
The exclusion applies only to the transient occupancy tax and does not remove other taxes or fees, although a separately stated meeting-room rental is also excluded from Chapter 23 taxes.
Maintains existing exemptions, including rentals lasting 180 continuous days or more and rentals by nonprofit or privately operated camps/conference centers under certain conditions.
Clarifies that the provision relates to non-overnight rentals and does not alter the tax treatment of overnight accommodations.
Effective date: the first day of the third month after the bill is enacted; additional provisions repeal 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