AL
Alabama House Bill HB220

Alabama 2024 Regular Session

Alabama House Bill HB220 Compare Versions

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33 HB220
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55 By Representatives Ellis, Collins, Brown
66 RFD: Ways and Means General Fund
77 First Read: 22-Feb-24
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12-5 HB220 Engrossed
12+5 V4MZLLP-1 01/16/2024 RA (F)RA 2024-222
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1414 First Read: 22-Feb-24
15+SYNOPSIS:
16+Under current law, a privilege or license tax is
17+levied upon every person, firm, or corporation engaging
18+in the business of renting or furnishing any room or
19+rooms, lodging, or accommodations to transients in any
20+hotel, motel, inn, tourist camp, tourist cabin, or any
21+other place in which rooms, lodgings, or accommodations
22+are regularly furnished to transients for a
23+consideration.
24+This bill establishes the Alabama Tourism Tax
25+Protection Act of 2024.
26+This bill would provide that an accommodations
27+intermediary shall collect the tax imposed on the
28+charge for such room, rooms, lodgings, or
29+accommodations, including the charge for use or rental
30+of personal property and services furnished in such
31+room.
32+This bill would also provide for the definition
33+of an accommodations intermediary, accommodations
34+provider, and room charge, and provides for the
35+transactions in which the tax is due.
1536 A BILL
1637 TO BE ENTITLED
17-AN ACT
18-Relating to transient occupancy tax; to establish the
19-Alabama Tourism Tax Protection Act of 2024; to define an
20-accommodations intermediary, accommodations provider, and room
21-charge; and to provide that an accommodations provider
22-intermediary shall collect the tax imposed.
23-BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
24-Section 1. Section 40-26-1.1 is added to the Code of
25-Alabama 1975, to read as follows:
26-§40-26-1.1.
27-(a) This act shall be known and cited as the Alabama
28-Tourism Tax Protection Act of 2024.
29-(b) For the purposes of this act, the following terms
30-have the following meanings:
31-(1) ACCOMMODATIONS INTERMEDIARY. Any person, firm, or
32-corporation, other than an accommodations provider, that
33-facilitates renting, furnishing, lodging, or accommodation
34-transactions subject to the tax levied under Section 40-26-1
35-and charges a room fee or an accommodations fee to the
36-customer, which it retains as compensation for such
37-facilitation. Facilitating transactions include brokering,
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67+TO BE ENTITLED
68+AN ACT
69+Relating to transient occupancy tax; to establish the
70+Alabama Tourism Tax Protection Act of 2024; to define an
71+accommodations intermediary, accommodations provider, and room
72+charge; and to provide that an accommodations provider
73+intermediary shall collect the tax imposed.
74+BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
75+Section 1. Section 40-26-1.1 is added to the Code of
76+Alabama 1975, to read as follows:
77+§40-26-1.1.
78+(a) This act shall be known and cited as the Alabama
79+Tourism Tax Protection Act of 2024.
80+(b) For the purposes of this act, the following terms
81+have the following meanings:
82+(1) ACCOMMODATIONS INTERMEDIARY. Any person, firm, or
83+corporation, other than an accommodations provider, that
84+facilitates renting, furnishing, lodging, or accommodation
85+transactions subject to the tax levied under Section 40-26-1,
86+and charges a room fee, or an accommodations fee to the
87+customer, which it retains as compensation for such
6788 facilitation. Facilitating transactions include brokering,
6889 coordinating, or in any other way arranging for the purchase
6990 of the right to use accommodations via a transaction directly,
7091 including via one or more payment processors, between a
7192 customer and an accommodations provider.
7293 (2) ACCOMMODATIONS PROVIDER. Any person, firm, or
7394 corporation engaging in the business of transactions subject
74-to the tax levied under Section 40-26-1 that has an active
75-lodgings tax account with the department and collects and
76-remits lodgings tax on such accommodations that are rented
77-directly by the owner of such accommodation.
78-(3) HOTEL. Any public lodging establishment that is
79-owned by a single entity or person; contains 15 or more
80-individual sleeping room accommodations; offers rental units
81-with daily or weekly rates; has a central office on the
82-property with specified hours of operation; has a bathroom for
83-each rental unit; is recognized as a hotel in the community in
84-which it is situated; and possesses a permit from the Alabama
85-Department of Public Health to operate as a hotel.
86-(4) MERCHANT OF RECORD. The legally authorized and
87-responsible entity that processes customer payments for the
88-sale of goods or services within the state of Alabama.
89-(5) PROFESSIONAL PROPERTY MANAGEMENT COMPANY. A
90-licensed real estate brokerage firm with a physical storefront
91-location authorized and licensed under Section 34-27-30 to
92-engage in the business of property management services on
93-behalf of property owners.
94-(6) ROOM CHARGE. The full retail price paid by the
95-guest for an accommodation, including any accommodations fee
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124+corporation engaging in the business of transactions subject
125+to the tax levied under Section 40-26-1, which has an active
126+lodgings tax account with the department, and collects and
127+remits lodgings tax on such accommodations that are rented
128+directly by the owner or manager of such accommodation.
129+(3) ROOM CHARGE. The full retail price paid by the
125130 guest for an accommodation, including any accommodations fee
126131 and any other fees or charges. This includes the charge for
127132 use or rental of personal property and services furnished in
128133 the room or accommodation.
129134 (c) Except as provided for in subsection (d), the
130135 accommodations intermediary shall collect and remit the tax
131136 imposed pursuant to this chapter for the facilitation of
132137 lodgings transactions subject to the tax levied under Section
133-40-26-1, and parallel local levies, for transactions occurring
134-on or after January 1, 2025. The tax shall be imposed on the
135-room charge as defined in this section.
138+40-26-1 for transactions occurring on or after January 1,
139+2025. The tax shall be imposed on the room charge as defined
140+in this section.
136141 (d) When an accommodations intermediary facilitates the
137-transaction on behalf of an accommodations provider as defined
138-in this section, the taxes collected may be remitted to the
139-accommodations provider when there is an executed written
140-agreement or contract specifying the responsible party for
141-remitting such taxes.
142+transaction on behalf of an accommodations provider, as
143+defined in this section, the taxes collected may be remitted
144+to the accommodations provider when there is an executed
145+written agreement or contract specifying the responsible party
146+for remitting such taxes.
142147 (e) An accommodations intermediary collecting and
143148 remitting taxes pursuant to subsection (d) shall not be liable
144149 for taxes not remitted by the accommodations provider to the
145150 Department of Revenue.
146151 (f) In any accommodation in which an accommodations
147152 intermediary facilitates the sale of the accommodation, the
148-accommodations intermediary shall separately state the amount
149-of the tax on the bill, invoice, or similar documentation and
150-shall add the tax to the room charge; thereafter, such tax
151-shall be a debt from the customer to the accommodations
152-intermediary.
153-(g) Every accommodations intermediary and
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182+intermediary facilitates the sale of the accommodation, the
183+accommodations intermediary shall separately state the amount
184+of the tax on the bill, invoice, or similar documentation and
185+shall add the tax to the room charge; thereafter, such tax
186+shall be a debt from the customer to the accommodations
187+intermediary.
183188 (g) Every accommodations intermediary and
184189 accommodations provider shall annually submit a report
185-prescribed by the Department of Revenue that includes the
190+prescribed by the Department of Revenue that includes, the
186191 physical address of each accommodation that was rented or
187-furnished greater than 14 days during the previous year. The
188-report provided herein is confidential taxpayer information
189-protected under Section 40-2A-10.
190-(h) The following entities shall be exempt from the
191-provisions of Section 1 of this act:
192- (1) Professional property management companies that
193-either collect and remit the tax levied pursuant Section
194-40-26-1, or manage properties leased for a month or more as
195-the principal residence of the tenant.
196-(2) Hotels that collect and remit the tax levied
197-pursuant to Section 40-26-1.
198-(3) A destination marketing organization whose primary
199-purpose is the promotion of tourism and receives funding from
200-taxes collected and remitted pursuant to Section 40-26-1.
201-(4) Providers of accommodations defined under
202-subsection (d) of 40-26-1, that collect and remit the tax
203-levied pursuant to Section 40-26-1.
204-Section 2. For any accommodations transactions, subject
205-to the tax levied in Section 40-26-1, through an
206-accommodations intermediary where the accommodations provider
207-has hired a professional property management company to
208-oversee, the professional property management company shall be
209-the merchant of record for such transactions.
210-Section 3. The Department of Revenue shall adopt rules
192+furnished greater than 14 days during the previous year and
193+the number of days that each accommodation was rented or
194+furnished during the previous year. The Department of Revenue,
195+not later than 60 days after receipt of such annual report,
196+shall provide this information to tax officers of county
197+governmental agencies pursuant to the exchange of information
198+provisions of Section 40-2A-10.
199+Section 2. The Department of Revenue shall adopt rules
211200 for the implementation and administration of this act.
201+Section 3. This act shall become effective October 1,
202+2024.
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242-Section 4. This act shall become effective October 1,
243-2024.
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247-2024.
248-House of Representatives
249-Read for the first time and referred
250-to the House of Representatives
251-committee on Ways and Means General
252-Fund
253-................22-Feb-24
254-Read for the second time and placed
255-on the calendar:
256- 0 amendments
257-................06-Mar-24
258-Read for the third time and passed
259-as amended
260-Yeas 101
261-Nays 0
262-Abstains 0
263-................04-Apr-24
264-John Treadwell
265-Clerk
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