SB150 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Garlan GudgerSenator
Republican
Session: Regular Session 2024
Title: Taxation; creates Tourism Tax Protection Act
Summary: SB150 creates the Alabama Tourism Tax Protection Act of 2024, requiring accommodations intermediaries to collect and remit a lodging tax on room charges and related fees and establishing new roles for who handles the tax.
What This Bill Does
The act defines key terms like accommodations intermediary, accommodations provider, and room charge. Starting January 1, 2025, intermediaries must collect the tax on room charges and related fees for bookings they handle and add it to the customer’s bill, with the collected tax remitted to the state. The tax may be remitted to the accommodations provider under a written agreement, and the intermediary is not liable for taxes the provider fails to remit. It also designates a merchant-of-record for cases where a provider uses a professional property management company, requires annual reporting to the Department of Revenue, and lists exemptions for certain hotels, management companies, and destination marketing organizations, with the act becoming effective October 1, 2024.

Who It Affects
Accommodations intermediaries (such as brokers, coordinators, and payment processors) who must collect and remit the lodging tax on room charges for transactions they handle and add the tax to the customer’s bill starting in 2025.
Accommodations providers and professional property management companies, who may have taxes collected by intermediaries, may become merchant of record if a provider uses a professional property management company, and must participate in annual reporting with certain exemptions available.

Key Provisions
Defines accommodations intermediary, accommodations provider, and room charge to establish who is taxed and who collects the tax.
Requires accommodations intermediaries to collect the tax on room charges and related fees for transactions on or after January 1, 2025 and to add the tax to the guest’s bill.
Allows the tax collected to be remitted to the accommodations provider under a written agreement; intermediaries are not liable for taxes the provider does not remit.
Creates a merchant-of-record rule when a provider uses a professional property management company; imposes annual reporting to the Department of Revenue; lists exemptions (hotels, certain management companies, destination marketing organizations); authorizes the Department to adopt implementing rules; effective date October 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: Taxation & Revenue