HB395 Alabama 2024 Session

Summary

Primary Sponsor

Jeff SorrellsRepresentative

Republican

Session

Regular Session 2024

Title

Houston County; lodging tax, county commission, authorize to levy, distribution for economic development and recreational facilities, referendum

Summary

HB395 would allow Houston County to levy a 1% lodging tax to fund economic development and recreational facilities, but only if voters approve it in a county referendum.

What This Bill Does

If approved, the Houston County Commission could impose up to 1% lodging tax on charges for rooms and lodging in county accommodations. Some stays would be exempt, including long-term rentals (30 days or more) and primary residences. The tax would be collected by the Alabama Department of Revenue (county may use an agent), with monthly reports and payments due by the 20th; a collection fee of up to 5% could be charged. Net proceeds would go to the Houston County General Fund to be used for economic development and funding of recreational facilities.

Who It Affects

• Lodging businesses in Houston County (hotels, motels, inns, condos, etc.) would collect and remit the tax from guests.
• Houston County residents and visitors/voters who decide via a countywide referendum whether to authorize the tax; if approved, the proceeds would fund economic development and recreational facilities, with collection overseen by the Department of Revenue.

Key Provisions

• Allows the Houston County Commission to levy a lodging tax up to 1% on charges for lodging and related services; applies to hotels, motels, inns, condominiums, houses, and other places where transient lodging is provided.
• Exempts certain rentals from the tax, including long-term rentals of 30 days or more and primary residences, with exemptions tied to state tax rules.
• Tax administration and collection: Department of Revenue collects the tax (county may contract with an agent); reports due by the 20th of each month; a collection fee of up to 5% may be deducted; penalties for late payment apply and interest accrues.
• Use of proceeds: net tax proceeds go to the Houston County General Fund to fund economic development and recreational facilities; the act requires a county referendum to become operative, and if approved, sections 1-6 take effect immediately; if not approved, the act has no effect; the act becomes effective June 1, 2024.

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

Subjects

Houston County