HB98 Alabama 2023 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Troy StubbsRepresentative
Republican
Session: Regular Session 2023
Title: Relating to Elmore County; to levy a lodging tax and room fee and provide for the collection of the tax and the distribution of the proceeds from the tax; to provide and confirm that this act is intended to be retroactive and curative; to provide that the levying and collecting of the taxes authorized by this act be approved and confirmed as of August 1, 2020; to provide that the collection of taxes pursuant to Act 2020-178 is ratified and confirmed; to provide that to the extent any amount of taxes authorized by this act was paid by a person prior to the effective date of this act, such amount shall be deemed to be legally levied and paid and shall be deemed to be a credit against the amount of taxes levied pursuant to this act; and to repeal Sections 45-26-246 through 45-26-246.04 and 45-26-246.06, and Section 45-26-246.05, Code of Alabama 1975, as last amended by Act 2022-49, which authorized the levy of a lodging tax in Elmore County.
Summary: HB98 would allow Elmore County to levy a lodging tax and a $2 room fee, retroactively approved to 2020, with proceeds used for economic development and distributed between the county and municipalities (including Prattville) under a new framework that replaces previous authority.
What This Bill Does
It imposes a lodging tax and a $2 room fee on lodging in Elmore County, with the total rate capped at 15.5% across the county and municipalities based on rates in effect on January 1, 2020. It creates reporting, payment, and recordkeeping requirements for lodging businesses, and allows penalties for late payment. Revenue goes into the Elmore County Lodging Fund and is split to support economic development: 67% for the county outside municipalities and 33% distributed to municipalities where the tax was collected (with Prattville's share remitted by 2022). It retroactively ratifies taxes collected under Act 2020-178 and provides credits for taxes already paid; it repeals the old authorization for a lodging tax in Elmore County and adds new provisions.

Who It Affects
Lodging businesses in Elmore County (hotels, motels, vacation rentals) — must collect the lodging tax and the $2 room fee, file monthly reports, and remit taxes, with penalties for late payment.
Visitors and guests staying in Elmore County lodging establishments — will pay the lodging tax and the $2 room fee as part of their room charges (with certain exemptions such as long-term stays and primary residences).

Key Provisions
Imposes a lodging tax and a $2 room fee in Elmore County, with the total rate across municipalities and county limited to 15.5% based on January 1, 2020 rates; no new tax if a municipality already imposes 15.5% or more.
When a municipality levies both a lodging tax and a cooperative district assessment, the combined total cannot exceed the 15.5% cap that was in effect on January 1, 2020; county must receive at least 2% of the lodging tax before distribution.
Prohibits the tax from applying to rentals primarily used as a principal residence and to certain long-term rentals exempt under Alabama law; exemptions also align with state TOT exemptions.
Requires monthly reporting by the 20th day of each month, with payment of the calculated tax, and allows deferral of tax for credit-based collections; penalties of 10% plus interest for late payment; records must be kept for two years.
Creates the Elmore County Lodging Fund; 67% of net proceeds outside municipalities go to economic development; 33% goes to municipalities where the tax was collected for economic development under an agreement (with Prattville's share remitted by March 31, 2022); room fees also go to the fund.
County may contract with an agent for tax collection (up to 5% collection fee); the act includes provisions applying state lodging tax rules to this local tax and authorizes enforcement and administration by the county.
Retroactive/curative intent: taxes authorized by Act 2020-178 are ratified and credits are provided for prior payments; old Elmore County lodging tax provisions are repealed.

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; lodging tax and room fee levied