House Bill 632 Alabama 2026 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

2026 Regular Session

Title

Etowah County, privilege and license tax on lodging, time of continuous supply for tax exemption increased

Summary

Etowah County would raise the stay length required to qualify for exemption from the county lodging tax and direct the tax revenue to tourism and beautification efforts.

What This Bill Does

The bill amends the county lodging tax provision to change the exemption rules and continues a 2% tax on lodging charges. It creates an exemption for long stays lasting a continuous period of 30 to 180 days or longer. Net proceeds from the tax go to the county general fund to fund tourism promotion (50%) and beautification/ecology (50%), as determined by local commissions, and the state Department of Revenue would issue rules and forms to implement it. The act would become effective October 1, 2026.

Who It Affects

• Lodging operators in Etowah County (hotels, motels, inns, etc.) who must collect the 2% tax and apply the new, longer-exemption rule.
• Guests staying in Etowah County lodging (short-term stays subject to the tax; long stays may be exempt under the new rule).
• Etowah County General Fund, which would receive the net tax proceeds.
• Etowah County tourism and beautification programs (via the 50/50 funding split for tourism and beautification/ecology).
• Alabama Department of Revenue, which would promulgate rules and forms to implement the changes.

Key Provisions

• Amends Section 45-28-243 to modify the lodging tax exemption in Etowah County and maintain a 2% tax on lodging charges.
• Establishes an exemption for stays lasting a continuous period of 30 to 180 days or longer (longer stays).
• Net proceeds from the tax go to the county general fund, split 50% for tourism promotion and 50% for beautification and ecology, as determined by the relevant commissions.
• The State Department of Revenue shall issue rules, forms, and instructions to implement the section.
• Effective date set for October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Etowah County