HB372 Alabama 2025 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

2025 Regular Session

Title

Elmore County; to levy a county rental tax; provide distribution of proceeds from tax

Summary

Elmore County would establish a new county rental tax starting Sept 1, 2025, with location-based rate formulas and dedicated funding for infrastructure and economic development.

What This Bill Does

It imposes a new rental tax on leases of tangible personal property in Elmore County beginning Sept 1, 2025. The Revenue Commissioner will compute rates for incorporated and unincorporated areas using specified formulas and publish them by Aug 1, 2025, with negative results meaning no tax. The tax would mirror the state rental tax for applicable items, but motor vehicle rentals are exempt, and the county would collect the tax by resolution. Proceeds go to the Enhance Elmore Fund, with 90% spent on infrastructure and 10% on economic development.

Who It Affects

• Residents and businesses renting or leasing tangible personal property in Elmore County, with tax rates depending on whether they are in an incorporated area (including police jurisdictions) or in unincorporated areas.
• Elmore County government, including the Revenue Commissioner and County Commission, which will calculate, publish, collect, administer, and allocate the tax proceeds.

Key Provisions

• The act applies only to Elmore County and becomes effective June 1, 2025; the tax begins September 1, 2025.
• A new county rental tax is created to parallel the state rental tax (same scope of transactions and taxpayers) with a motor vehicle rental exemption.
• Rate formulas: incorporated areas: 9.5% minus the lesser of (state rental tax rate or 4%), minus the municipality’s general rental tax rate; unincorporated areas: greater of 5.5% or (9.5% minus the lesser of (state rate or 4%)); if a calculation yields a negative number, the tax is not levied.
• Rates are rounded to the nearest tenth of a percent and published by August 1, 2025; rates can be recalculated if underlying rates change.
• Administration and collection are set by county resolution.
• Proceeds are deposited into the Enhance Elmore Fund; 90% used for infrastructure and 10% used for economic development.

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