HB477 Alabama 2023 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Rick RehmRepresentative
Republican
Session: Regular Session 2023
Title: Relating to Henry County; authorizing the Henry County Commission to levy a lodging tax in the county; providing for the distribution of the proceeds from the tax; and to provide for a referendum.
Summary: HB477 would let Henry County impose a lodging tax of up to 4% on transient lodging charges, with funds used for economic development and tourism, pending a county referendum.
What This Bill Does
It authorizes the Henry County Commission to levy a lodging tax up to 4% on room charges and services at lodging establishments in the county. The county may use an agent to collect the tax, and proceeds, after deductions for collection costs, go to Henry County's General Fund for economic development and tourism promotion. The measure includes specific exemptions, reporting requirements to the Department of Revenue, penalties for nonpayment, and a required voter referendum to activate the tax.

Who It Affects
Lodging providers in Henry County (hotels, motels, inns, etc.) who would collect the tax from guests and remit it to the Department of Revenue (with potential collection costs).
Transients/guests who stay in Henry County lodging and would pay the up-to-4% tax as part of their charges.
Henry County government and its General Fund, which would receive net proceeds after collection costs and use them for economic development and tourism promotion.
The Department of Revenue (and any contracted collection agent), which would administer and collect the tax and enforce compliance.

Key Provisions
Section 1 authorizes the Henry County Commission to levy a lodging tax up to 4% on charges for lodging and related services in the county.
Section 2 establishes exemptions: (a) amounts already taxed under the state sales tax and certain long-term rentals; (b) rental accommodations intended as a principal residence are not taxed.
Section 3 sets reporting and payment duties to the Department of Revenue, allows a collection agent, requires monthly reports, two-year record retention, and imposes a 10% penalty plus interest for late payment (with possible waivers).
Section 4 integrates applicable state lodging tax rules and administration to the Henry County tax.
Section 5 allows the Department of Revenue to deduct up to 5% of tax collections for collection costs before sending the rest to the county.
Section 6 directs net tax proceeds to the Henry County General Fund to be used for economic development and tourism promotion.
Section 7 requires a countywide referendum for Sections 1-6 to take effect; if approved by majority, the act becomes operative immediately; if not, it has no effect.
Section 8 makes the act effective immediately after governor approval.

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