HB220 Alabama 2024 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

Regular Session 2024

Title

Taxation; creates Tourism Tax Protection Act

Summary

HB220 creates the Alabama Tourism Tax Protection Act of 2024, establishing a system in which accommodations intermediaries collect and remit lodging taxes on room charges for bookings, with new definitions, a merchant-of-record rule, and annual reporting requirements.

What This Bill Does

The bill defines key terms such as accommodations intermediary, accommodations provider, and room charge. Starting January 1, 2025, an accommodations intermediary must collect and remit the lodging tax on transactions subject to the lodgings tax, and the tax must be shown separately on the guest’s bill as part of the room charge. If a provider uses a professional property management company to oversee transactions, that company may be the merchant of record and taxes may be remitted to the provider under a written agreement; the intermediary is not liable for taxes not remitted by the provider. The act requires annual confidential reporting to the Department of Revenue, provides exemptions for certain entities, and directs the Department to adopt implementing rules; it becomes effective October 1, 2024 with the tax applying to eligible transactions from January 1, 2025.

Who It Affects

• Accommodations intermediaries and accommodations providers (including professional property management companies) will gain new tax collection/remittance duties, billing requirements, and potential changes in who serves as the merchant of record.
• Guests and travelers paying for lodging will see the lodging tax added to their room charge on the bill and owe it to the intermediary, who remits it to the Department of Revenue; some entities have exemptions from parts of the act.

Key Provisions

• Defines accommodations intermediary, accommodations provider, hotel, merchant of record, professional property management company, and room charge.
• Requires accommodations intermediaries to collect and remit the lodging tax on qualifying transactions beginning January 1, 2025; the tax is imposed on the room charge and included on the guest bill.
• Allows the merchant of record to be a professional property management company when the provider uses one, with remittance to the provider under a written agreement and no intermediary liability for provider non-remittance.
• Requires the intermediary to separately state the tax on the bill and treat the tax as a debt from the customer to the intermediary.
• Annually, intermediaries and providers must file a confidential report with the Department of Revenue listing addresses of accommodations rented more than 14 days.
• Provides exemptions for certain entities, including hotels that collect/remit, professional property management companies that collect/remit, destination marketing organizations funded by lodging taxes, and providers who collect/remit.
• Section 2 states that if a provider uses a professional property management company overseen by an intermediary, the PM company is the merchant of record for those transactions.
• The Department of Revenue will adopt implementing rules for the act.
• Effective date is October 1, 2024, with the tax applying to eligible transactions on or after January 1, 2025.

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

Subjects

Taxation & Revenue