HB647 Alabama 2021 Session

Summary

Primary Sponsor

Randall Shedd

Republican

Session

Regular Session 2021

Title

Cullman Co., lodgings tax decreased upon retirement of certain debt, Cullman County Tourism Bureau estab., Secs. 45-22-242, 45-22-242.11 am'd.

Summary

HB647 would cut Cullman County's lodging tax from 5% to 4% after certain debt is paid and set up a Tourism Bureau to manage and allocate the tax revenue for tourism, economic development, and debt retirement.

What This Bill Does

It amends local tax law to set a 5% lodging tax normally, but reduces it to 4% once specified debts (Exit 305 Interchange, County Road 222, and the Chamber building debt) are retired. It creates the Cullman County Tourism Bureau and directs how tax proceeds are split among the Chamber of Commerce, the Tourism Bureau, and debt retirement, with specific uses for tourism promotion, economic development, and retiring debt. It also requires the City of Cullman to contribute an additional 0.25% of the lodging tax, and establishes timing and sunset rules for certain funds, with the overall changes becoming effective June 1, 2021.

Who It Affects

• Lodging providers and their customers in Cullman County, as the tax rate paid on rentals could drop from 5% to 4% after debt retirement and certain exemptions apply (state sales tax applied to some items; 30-day exemptions).
• Local government and tourism-related entities (Cullman County Chamber of Commerce, Cullman County Tourism Bureau, City of Cullman, and debt-holders for the Exit 305 Interchange and related facilities) who receive and allocate tax proceeds and are affected by how funds are used for operations, development, tourism promotion, and debt retirement.

Key Provisions

• Amends Sections 45-22-242 and 45-22-242.11 to modify the county lodging tax and its collection/distribution.
• Normal lodging tax rate is 5%; the rate drops to 4% upon retirement of existing debt for the Exit 305 Interchange, County Road 222, and the Cullman Area Chamber of Commerce building debt.
• Tax exemptions include rentals taxed under state sales tax and rooms rented for 30 continuous days or more.
• City of Cullman shall transmit an additional 0.25% of the privilege tax on transient accommodations within the city boundaries (Ordinance No. 2007-7).
• Two-fifths of proceeds go to the Cullman County Chamber of Commerce for operations and tourism promotion, plus a designated portion for economic development and debt retirement on the Cullman Family Recreation Complex.
• One-fifth of proceeds go to the Cullman County Tourism Bureau to promote tourism through festivals, events, and tournaments countywide.
• Two-fifths of proceeds sent to the Cullman County Commission are used to pay off the Exit 305 Interchange debt and the Chamber building debt; after retirement of these debts, that portion supports other tourism-related uses and debt retirement schedule, with a sunset for a portion by 12/31/2024.
• The Cullman County Tourism Bureau is created with specified appointments and terms for its board members, including representation from the City, Chamber, hotel industry, Wallace State Community College, and other tourism interests.
• Effective June 1, 2021, and funds are controlled by the Cullman County Tourism Board after distribution costs.

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

Subjects

Cullman County