SB171 Alabama 2019 Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

Regular Session 2019

Title

Lodging tax, rooms and spaces not used for overnight accommodations, exemption, consistent with rule of Revenue Dept., Sec. 40-26-1 am'd.

Summary

SB 171 updates Alabama's lodging tax by changing regional rates and adding exemptions for non-overnight spaces and certain long-term or nonprofit rentals.

What This Bill Does

It creates a two-tier lodging tax: 5% in the Mountain Lakes counties and 4% elsewhere. It exemts rentals of spaces not used for overnight sleeping (like ballrooms or conference rooms) when the charge is separately stated and used exclusively for meetings or private events. It preserves exemptions for long stays of 180 days or more and for nonprofit or privately operated camps and conference centers serving children, students, or nonprofit members. It also defines terms used in these exemptions and sets an effective date for the law.

Who It Affects

• Lodging providers in the Mountain Lakes region (the listed counties) will collect a 5% lodging tax on charges for rooms and related services.
• Lodging providers in all other Alabama counties will collect a 4% lodging tax.
• Event venues within lodging facilities that rent non-overnight spaces (ballrooms, conference rooms, etc.) will not collect the lodging tax on those separately stated charges when used exclusively for meetings or private events.
• Guests and organizations using long-term lodging (180+ consecutive days) and certain nonprofit or privately operated camps/conference centers will be exempt from the lodging tax for those arrangements.

Key Provisions

• The tax rate is 5% in the Alabama Mountain Lakes area counties (Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, Winston) and 4% in all other counties.
• Rentals of rooms or spaces not intended for overnight sleeping (such as ballrooms, dining rooms, conference rooms, or similar spaces) are not subject to the transient lodging tax if the charge is separately stated and the space is used exclusively for meetings, conferences, seminars, private parties, or similar events.
• Exemptions apply to 180-day continuous rentals and to nonprofit organizations operating camps, conference centers, or similar facilities for recreational or educational programs, as well as privately operated facilities that serve children, students, or nonprofit members or guests.
• Definitions related to exemptions include: 'children' under 21; 'student' as defined by IRS rules; 'nonprofit organization' as 501(c)(3); and 'privately operated' facilities not run by a nonprofit.
• The act preserves a clause that rentals or services taxed under Division 1 of Article 1 of Chapter 23 are exempt from this tax, and it becomes effective on the first day of the third month after passage.

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