HB299 Alabama 2019 Session

Updated Feb 26, 2026

High Interest

Summary

Primary Sponsor: Thad McClammy
Democrat
Session: Regular Session 2019
Title: Montgomery Co., rental tax, co. commission authorized to levy and collect, exemptions, administration and enforcement of rental tax
Summary: HB 299 allows Montgomery County to impose a rental tax on renters of tangible property, with set rates and exemptions, and to use the proceeds for county purposes.
What This Bill Does
The bill authorizes the county to levy and collect a rental tax from renters, collected through the lessor but treated as a direct tax on the renter. It sets maximum rates (up to 0.75% for automotive vehicles or trailers; up to 2% for other rentals) and provides exemptions (including rental passenger vehicles and rental trucks). It directs that the tax be administered and collected either by the county, the state Department of Revenue, or a private collection agency, and that proceeds go to the county general fund; the county can issue debt secured by the tax proceeds and designate other entities to receive and use those funds. It also establishes recordkeeping, enforcement mechanisms, and protections against impairment of bond contracts, along with severability and an immediate effective date upon approval.

Who It Affects
Lessees or renters in Montgomery County will pay the rental tax on each qualifying rental transaction, with the tax amount added to the rental price and collected at the time of rental.
Lessor or vendor (the property owner or rental business) will collect the tax from renters, remit it to the designated collecting authority, and maintain records; they may also face administration and enforcement duties and may be charged a collection fee.

Key Provisions
The Montgomery County Commission may levy and collect a rental tax on leasing or renting tangible personal property within the county.
The tax is a direct tax on the lessee or renter, not a gross receipts tax on the lessor, and is collected for convenience by the lessor.
Rate structure: up to 0.75% of rental revenue for automotive vehicles, truck trailers, semi-trailers, or house trailers; up to 2% of rental revenue for all other rentals; rental passenger vehicles and rental trucks are exempt.
Exemptions: numerous specific exemptions listed (e.g., rental of rental passenger vehicles and rental trucks, certain lodgings, docking facilities, premises used for housing, and various other categories).
Administration and collection: the tax may be administered and collected by the county, the state Department of Revenue, or a private collection agency, with rules aligned to the state rental tax and a collection fee up to 5% of gross proceeds, or the actual cost if lower.
Proceeds: rental tax revenues go to the county general fund and may be used for purposes determined by the county commission; the county may issue bonds or other indebtedness secured by the tax proceeds.
Designation of third-party entities: the county can designate other governmental entities or public corporations to receive and use a portion of the tax proceeds, with similar debt-issuance and security rights transplanting to those entities.
Public officials and their families may not personally gain from the rental tax proceeds.
Legal protections: provisions about contracts and impairment protection for bonds and obligations, severability, and an effective date immediately after passage.
Repeals and amendments: supersedes conflicting provisions of Act 89 (1975) and repeals Act Number 2017-465.

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