HB457 Alabama 2020 Session

Summary

Primary Sponsor

Will Dismukes

Republican

Session

Regular Session 2020

Title

Elmore Co., lodging tax, co. commission authorized to levy, distrib.

Summary

HB457 would let Elmore County impose a lodging tax on short-term stays and use the money to help economic development, with a rate structure tied to nearby municipalities and a possible extra room fee.

What This Bill Does

The bill allows the Elmore County Commission to charge a lodging tax on rooms and accommodations for transients, aiming for a total rate of 15.5% in taxed areas based on 2020 municipal rates (no extra tax if a municipality already tops 15.5%). It also allows a $2 per-room fee to match Prattville's rate. There are exemptions for certain charges, long-term stays (30+ days), and primary residences. Tax collection would be monthly, with reports and payments due by the 20th; counties may hire an agent to collect, keep records for two years, and face penalties for late payment. Net proceeds go to the Elmore County Lodging Fund, with 67% used for county economic development and 33% shared with municipalities where the tax was collected (if there is an agreement); room fees also go to the Fund. All funds are to be used for economic development as determined by the County Commission, and the act follows state lodging tax rules and higher-level laws.

Who It Affects

• Lodging businesses in Elmore County (hotels, motels, inns, etc.) will collect the lodging tax and may implement the $2 room fee, and must file monthly reports.
• Residents and visitors of Elmore County who pay for lodging, as the tax increases the overall cost of stays and funds local economic development programs and county/municipal projects.

Key Provisions

• The Elmore County Commission may levy a lodging tax on rooms, lodging, or accommodations for transients, with the total rate designed to reach 15.5% in taxed areas based on 2020 municipal rates (no increase if a municipality already has 15.5% or more).
• An additional room fee of $2 may be charged to align county rates with Prattville in Autauga County.
• Exemptions include charges treated under state sales tax and rentals to individuals for 30 continuous days or more, plus primary residences; exemptions adjust if state law changes.
• Tax reporting and payment are due by the 20th of each month; counties may contract with an agent to handle collection and reporting.
• Recordkeeping requirements: businesses must keep records for two years and allow audits by the county or its agent; penalties of 10% plus interest may apply for late payment, with possible waivers.
• Proceeds go into the Elmore County Lodging Fund; 67% of remaining funds go to county economic development; 33% go to municipalities where the tax was collected if there is an agreement, otherwise revert to the Fund.
• All net proceeds from room fees also go to the Lodging Fund for economic development, to be used as determined by the Elmore County Commission.
• The act references and aligns with state lodging tax statutes and includes severability and immediate effectiveness upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Elmore County