HB220ENGROSSED
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HB220
FY8JC5C-2
By Representatives Ellis, Collins, Brown
RFD: Ways and Means General Fund
First Read: 22-Feb-24
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First Read: 22-Feb-24
A BILL
TO BE ENTITLED
AN ACT
Relating to transient occupancy tax; to establish the
Alabama Tourism Tax Protection Act of 2024; to define an
accommodations intermediary, accommodations provider, and room
charge; and to provide that an accommodations provider
intermediary shall collect the tax imposed.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-26-1.1 is added to the Code of
Alabama 1975, to read as follows:
ยง40-26-1.1.
(a) This act shall be known and cited as the Alabama
Tourism Tax Protection Act of 2024.
(b) For the purposes of this act, the following terms
have the following meanings:
(1) ACCOMMODATIONS INTERMEDIARY. Any person, firm, or
corporation, other than an accommodations provider, that
facilitates renting, furnishing, lodging, or accommodation
transactions subject to the tax levied under Section 40-26-1
and charges a room fee or an accommodations fee to the
customer, which it retains as compensation for such
facilitation. Facilitating transactions include brokering,
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facilitation. Facilitating transactions include brokering,
coordinating, or in any other way arranging for the purchase
of the right to use accommodations via a transaction directly,
including via one or more payment processors, between a
customer and an accommodations provider.
(2) ACCOMMODATIONS PROVIDER. Any person, firm, or
corporation engaging in the business of transactions subject
to the tax levied under Section 40-26-1 that has an active
lodgings tax account with the department and collects and
remits lodgings tax on such accommodations that are rented
directly by the owner of such accommodation.
(3) HOTEL. Any public lodging establishment that is
owned by a single entity or person; contains 15 or more
individual sleeping room accommodations; offers rental units
with daily or weekly rates; has a central office on the
property with specified hours of operation; has a bathroom for
each rental unit; is recognized as a hotel in the community in
which it is situated; and possesses a permit from the Alabama
Department of Public Health to operate as a hotel.
(4) MERCHANT OF RECORD. The legally authorized and
responsible entity that processes customer payments for the
sale of goods or services within the state of Alabama.
(5) PROFESSIONAL PROPERTY MANAGEMENT COMPANY. A
licensed real estate brokerage firm with a physical storefront
location authorized and licensed under Section 34-27-30 to
engage in the business of property management services on
behalf of property owners.
(6) ROOM CHARGE. The full retail price paid by the
guest for an accommodation, including any accommodations fee
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guest for an accommodation, including any accommodations fee
and any other fees or charges. This includes the charge for
use or rental of personal property and services furnished in
the room or accommodation.
(c) Except as provided for in subsection (d), the
accommodations intermediary shall collect and remit the tax
imposed pursuant to this chapter for the facilitation of
lodgings transactions subject to the tax levied under Section
40-26-1, and parallel local levies, for transactions occurring
on or after January 1, 2025. The tax shall be imposed on the
room charge as defined in this section.
(d) When an accommodations intermediary facilitates the
transaction on behalf of an accommodations provider as defined
in this section, the taxes collected may be remitted to the
accommodations provider when there is an executed written
agreement or contract specifying the responsible party for
remitting such taxes.
(e) An accommodations intermediary collecting and
remitting taxes pursuant to subsection (d) shall not be liable
for taxes not remitted by the accommodations provider to the
Department of Revenue.
(f) In any accommodation in which an accommodations
intermediary facilitates the sale of the accommodation, the
accommodations intermediary shall separately state the amount
of the tax on the bill, invoice, or similar documentation and
shall add the tax to the room charge; thereafter, such tax
shall be a debt from the customer to the accommodations
intermediary.
(g) Every accommodations intermediary and
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(g) Every accommodations intermediary and
accommodations provider shall annually submit a report
prescribed by the Department of Revenue that includes the
physical address of each accommodation that was rented or
furnished greater than 14 days during the previous year. The
report provided herein is confidential taxpayer information
protected under Section 40-2A-10.
(h) The following entities shall be exempt from the
provisions of Section 1 of this act:
(1) Professional property management companies that
either collect and remit the tax levied pursuant Section
40-26-1, or manage properties leased for a month or more as
the principal residence of the tenant.
(2) Hotels that collect and remit the tax levied
pursuant to Section 40-26-1.
(3) A destination marketing organization whose primary
purpose is the promotion of tourism and receives funding from
taxes collected and remitted pursuant to Section 40-26-1.
(4) Providers of accommodations defined under
subsection (d) of 40-26-1, that collect and remit the tax
levied pursuant to Section 40-26-1.
Section 2. For any accommodations transactions, subject
to the tax levied in Section 40-26-1, through an
accommodations intermediary where the accommodations provider
has hired a professional property management company to
oversee, the professional property management company shall be
the merchant of record for such transactions.
Section 3. The Department of Revenue shall adopt rules
for the implementation and administration of this act.
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for the implementation and administration of this act.
Section 4. This act shall become effective October 1,
2024.
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2024.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Ways and Means General
Fund
................22-Feb-24
Read for the second time and placed
on the calendar:
0 amendments
................06-Mar-24
Read for the third time and passed
as amended
Yeas 101
Nays 0
Abstains 0
................04-Apr-24
John Treadwell
Clerk
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