HB98ENROLLED
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DQD6HT-2
By Representatives Stubbs, Ingram, Starnes (N & P)
RFD: Local Legislation
First Read: 07-Mar-23
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Enrolled, An Act,
Relating to Elmore County; to levy a lodging tax and
room fee and provide for the collection of the tax and the
distribution of the proceeds from the tax; to provide and
confirm that this act is intended to be retroactive and
curative; to provide that the levying and collecting of the
taxes authorized by this act be approved and confirmed as of
August 1, 2020; to provide that the collection of taxes
pursuant to Act 2020-178 is ratified and confirmed; to provide
that to the extent any amount of taxes authorized by this act
was paid by a person prior to the effective date of this act,
such amount shall be deemed to be legally levied and paid and
shall be deemed to be a credit against the amount of taxes
levied pursuant to this act; and to repeal Sections 45-26-246
through 45-26-246.04 and 45-26-246.06, and Section
45-26-246.05, Code of Alabama 1975, as last amended by Act
2022-49, which authorized the levy of a lodging tax in Elmore
County.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) In Elmore County, in addition to all
other taxes imposed by law, there is levied a privilege or
license tax in the amount prescribed in this section against
every person within the county engaging in the business of
renting or furnishing a room or rooms, lodging, or
accommodations to any transient in any place in which rooms,
lodgings, or accommodations are regularly furnished to
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transients for a consideration.
(b)(1) The amount of the tax shall be equal to a
percent of the charge for the rooms, lodgings, or
accommodations, including the charge for use of rental or
personal property and services furnished in the room or rooms
within Elmore County equal to a percent in the corporate
limits of each municipality levying a lodging tax and a
percent in the remainder of the county outside of the
corporate limits of any municipality levying a lodging tax so
that the total lodging tax levied in each municipality levying
a lodging tax on January 1, 2020, and in the remainder of the
county outside of the corporate limits of any municipality
levying a lodging tax is equal to 15.5 percent, based on the
lodging tax levied by any municipality on January 1, 2020;
provided, however, in any municipality levying a lodging tax
on January 1, 2020, equal to or exceeding 15.5 percent, no
additional lodging tax shall be levied.
(2) In any municipality where the municipality levies
both a lodging tax and a cooperative district assessment for
lodging, the lodging tax and the cooperative district
assessment fee on lodging at any lodging establishment shall
be added together and the total tax and fees on lodging at the
establishments shall not exceed the 15.5 percent considering
the combined lodging tax and cooperative district assessment
fee that was in effect as of January 1, 2020.
(3) In the event that a lodging tax and a cooperative
district assessment fee on lodging is required to be added
together, the county shall receive a minimum of two percent of
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the lodging tax levied by this act prior to distribution to a
municipality as provided in this act.
(4) In addition, there is levied, in all areas of the
county other than within the corporate limits of the City of
Prattville, an additional room fee on the rental of a room
subject to the lodging tax in the amount of two dollars ($2)
in order to equalize the room fee in Elmore County with the
rate in effect on the effective date of this act in the
corporate limits of the City of Prattville.
Section 2.(a) There are exempted from the provisions of
the tax levied by this act and from the computation of the
amount of the tax levied or payable both of the following:
(1) Charges for property sold or services furnished
which are required to be included in the tax levied by the
state sales tax act.
(2) Charges for the rental of rooms, lodgings, or
accommodations to a person for a period of 30 continuous days
or more pursuant to the exemption provision of Alabama's
Transient Occupancy Tax, Section 40-26-1 of the Code of
Alabama 1975. A subsequent amendment or change to the Alabama
Transient Occupancy Tax shall also have the effect of
similarly changing the exemption provision of this
subdivision.
(b) Notwithstanding the provisions of this section, the
tax shall not apply to the rental of living accommodations
which are intended primarily for rental to persons as their
principal or permanent place of residence.
Section 3.(a) The tax levied by this act, except as
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otherwise provided, shall be due and payable to Elmore County
on or before the 20th day of the month next succeeding the
month in which the tax accrues. On or before the 20th day of
each month, every person on whom the tax is levied by this act
shall render to the county on a form prescribed by the
department a true and correct statement showing the gross
proceeds of the business subject to the tax for the then
preceding month together with other information as the county
requires. At the time of making the monthly report, the
taxpayer shall compute and pay to the county the amount of tax
shown due. A person subject to the tax who conducts business
on a credit basis may defer reporting and paying the tax until
after the person has received payment of the items, articles,
or accommodations furnished. In the event the taxpayer defers
reporting and paying the taxes, he or she shall thereafter
include in each monthly report all credit collections made
during the then preceding month and shall pay the amount of
taxes computed thereon at the time of filing the report.
(b) It shall be the duty of every person engaged or
continuing in a business subject to the tax levied by this act
to keep and preserve suitable records of the gross proceeds of
the business and other books or accounts necessary to
determine the amount of tax for which he or she is liable. The
records shall be kept and preserved for a period of two years
and shall be open for examination at all times by the county
or by a duly authorized agent, deputy, or employee of the
county.
(c) A person who fails to pay the tax levied by this
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act within the time required by this section shall pay, in
addition to the tax, a penalty of 10 percent of the amount of
tax due together with interest from the date on which the tax
became due and payable at the rate due and payable on the
state lodging tax. The penalty and interest shall be assessed
and collected as a part of the tax. The county, if good and
sufficient reason be shown, may waive or remit the penalty or
a portion of the penalty.
Section 4. (a) All of the following shall apply to the
levied tax:
(1) All provisions of the state lodging tax statutes
with respect to payment, assessment, and collection of the
state lodging tax.
(2) Making of reports and keeping and preserving
records, interest after due date of tax, or otherwise.
(3) The adoption of rules with respect to the state
lodging tax.
(4) The administration and enforcement of the state
lodging tax statutes, which are not inconsistent with this act
when applied to the levied tax.
(b) The county shall have and exercise the same powers,
duties, and obligations with respect to the district taxes
levied as imposed on the Commissioner of the Department of
Revenue and the department, respectively, by the state lodging
tax statutes. All provisions of the state lodging tax statutes
that are made applicable to this act, to the taxes levied, and
to the administration of this act are incorporated herein by
reference and made a part as if fully set forth.
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Section 5.The county may contract with an agent for
collection of the tax and the agent may deduct from the
proceeds of the tax levied an amount equal to the contracted
amount for the collections, provided the charge does not
exceed five percent of the total amount of tax collected.
Following that deduction, the agent shall pay the remainder of
the tax proceeds to the county.
Section 6. (a) Except as otherwise provided in this
act, the balance of the proceeds from the tax levied by this
act shall be deposited into the Elmore County Lodging Fund.
The net proceeds from the tax collected outside of the
municipalities shall be used by the county for economic
development purposes. Sixty-seven percent of the remaining
funds in the Lodging Fund shall be used by the county for
economic development purposes. Thirty-three percent of the
remaining funds in the Lodging Fund shall be distributed to
the municipalities on an equal basis where the lodging tax was
collected to be used by the municipality for economic
development purposes pursuant to an agreement with Elmore
County. Except as provided in subsection (b), if Elmore County
and any municipality fail to agree on the use of the funds by
the municipality, that portion shall revert to the Lodging
Fund for appropriation by the county for economic development
purposes. All of the net proceeds from any room fees shall be
deposited in the Elmore County Lodging Fund to be used by the
county for economic development purposes. All funds in the
lodging fund shall be used for economic development purposes
as determined by the Elmore County Commission.
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(b) Notwithstanding subsection (a), the portion to be
distributed to the City of Prattville of the 33 percent of the
net proceeds described in subsection (a) shall be remitted to
the City of Prattville by the Elmore County Commission for
economic development purposes no later than March 31, 2022.
Section 7. It is the intent of the Legislature that
this act be construed as retroactive and curative, and the
levying and collection of taxes pursuant to Act 2020-178 are
hereby ratified, approved, validated, and confirmed. To the
extent that any amount of taxes authorized by this act was
paid by a person and collected by the county prior to the
effective date of this act, such amount shall be deemed to be
legally levied and paid and shall be deemed to be a credit
against the amount of taxes levied pursuant to this act.
Section 8. Sections 45-26-246 through 45-26-246.04 and
45-26-246.06, and Section 45-26-246.05, Code of Alabama 1975,
as last amended by Act 2022-49, authorizing the levy of a
lodging tax in Elmore County, are repealed.
Section 9.This act shall become effective immediately
following its passage and approval by the Governor, or its
otherwise becoming law.
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________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 11-Apr-23.
John Treadwell
Clerk
Senate 18-Apr-23 Passed
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