Bill > HB204

This bill amends existing law to allow Henry County to levy a lodging tax of up to four percent on the rental of rooms, lodging, or accommodations to transients in various establishments, including hotels, motels, inns, condominiums, houses, and now specifically includes recreational vehicle parks. This tax applies to charges for rooms and any associated rental property or services. Exemptions from this tax include charges for items already subject to state sales tax, and rentals to individuals for 30 continuous days or more, or as otherwise exempted by Alabama's Transient Occupancy Tax law, with the understanding that any changes to the state law will also affect this county exemption. The bill clarifies that the tax does not apply to rentals intended as a principal or permanent residence. It also outlines the process for tax payment, reporting, and collection, stating that the tax is due to the Department of Revenue by the 20th of the following month, and that the county may contract with an agent for collection. Penalties and interest will be applied for late payments, and record-keeping requirements are established. The bill incorporates by reference many provisions of the state lodging tax statutes regarding payment, assessment, collection, reporting, and enforcement. The Department of Revenue will deduct a fee for collection services, not exceeding five percent, before remitting the remainder to the county. The net proceeds from this tax will be deposited into the Henry County General Fund and used for economic development and tourism promotion. This act is set to become effective on October 1, 2026.

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