House Bill 204 Alabama 2026 Session

Summary

Primary Sponsor

Rick RehmRepresentative

Republican

Session

2026 Regular Session

Title

Henry County; county lodging tax further provided for

Summary

HB204 would authorize Henry County to impose a lodging tax of up to 4% on room charges to fund economic development and tourism, effective October 1, 2026.

What This Bill Does

The Henry County Commission could levy a lodging tax up to 4% on charges for rooms and related services at county lodging businesses. The tax would be collected by the Alabama Department of Revenue, with monthly reports due by the 20th; the county may hire an agent to collect the tax, with collection fees capped at 5%. Exemptions apply to charges already taxed by the state sales tax and to long-term rentals (30 days or more) or other Transient Occupancy Tax exemptions; living accommodations intended as a principal residence are not taxed. Net proceeds would go to the Henry County General Fund to support economic development and tourism, with the act becoming effective October 1, 2026.

Who It Affects

• Henry County lodging businesses (hotels, motels, inns, condominiums, RV parks, etc.) would be responsible for collecting the new tax and keeping required records.
• County residents and visitors staying in Henry County lodging would pay the tax as part of their room charges, subject to the exemptions described above.

Key Provisions

• Imposes a lodging tax on Henry County lodging charges up to 4%, including charges for rental/personal property and services furnished with the room.
• Exempts charges included in the state sales tax, long-term rentals of 30 continuous days or more (or other TOT exemptions), and living accommodations intended as the principal residence.
• Administration and reporting: the Department of Revenue collects the tax; monthly reports are due by the 20th; the county may contract with an agent for collection, with fees capped at 5%; records must be kept for two years and are subject to examination.
• Penalties and interest: late payment carries a 10% penalty plus interest at the rate for state lodging tax; penalties and interest may be waived in certain cases.
• Use of proceeds: net tax proceeds go to the Henry County General Fund for economic development and tourism promotion.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Henry County