SB212 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: David Burkette
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: Montgomery County may levy a rental tax on renters of tangible property, with defined rates, exemptions, and collection rules, and use the revenue to fund county operations and related obligations.
What This Bill Does
The county can impose a rental tax on leasing or renting tangible property, treating it as a direct tax on the lessee rather than a tax on the lessor's gross receipts; rates are up to 0.75% for automotive-related rentals and up to 2% for all other rentals, with certain exemptions. Tax proceeds go to the county general fund and the county can issue bonds or other obligations secured by the tax and designate other governmental entities to receive proceeds for specified purposes. Administration and collection can be handled by the county, the state Department of Revenue, or a private collection agency, with recordkeeping, reporting, penalties, liens, and enforcement aligned to state rental tax laws.

Who It Affects
Lessees/Renters in Montgomery County would pay the rental tax, added to the rental price at the point of lease or rental.
Lessor/Vendor businesses in Montgomery County would collect the tax from renters, remit it to the county or designated agency, maintain records, file monthly or quarterly returns, and face enforcement and potential penalties for noncompliance.

Key Provisions
Authorizes the Montgomery County Commission to levy a rental tax on leasing or renting tangible personal property within the county, with rates up to 0.75% for automotive-related rentals and up to 2% for other rentals; rental passenger vehicles and rental trucks are exempt.
The tax is a direct tax on the lessee and is pre-collected for convenience by the lessor; it is not a gross receipts tax on the lessor.
Proceeds go to the county general fund; the county may issue bonds or other indebtedness secured by the tax and may designate a governmental entity to receive proceeds and use them for specified purposes; such designations and pledges are protected by contract.
Administration and collection may be performed by the county, the state Department of Revenue, or a private collection agency, with the same or similar collection rules as the state rental tax; the county may charge a collection fee up to 5% of gross proceeds, or actual costs if lower.
The act provides exemptions (e.g., lodging charges for transients, certain property used as residences, and other specified categories) and sets detailed recordkeeping, reporting, and lien/enforcement provisions.
Public officials and their family members are prohibited from personal gain from rental tax proceeds; the act is severable and has an immediate effective date after gubernatorial approval; Act 2017-465 is repealed and certain conflicting provisions are superseded.

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