HB395ENROLLED
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HB395
EGLT229-2
By Representatives Sorrells, Rehm, Lee, Clouse (N & P)
RFD: Local Legislation
First Read: 02-Apr-24
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First Read: 02-Apr-24
Enrolled, An Act,
Relating to Houston County; authorizing the Houston
County Commission to levy a lodging tax in the county;
providing for the distribution of the proceeds from the tax;
and to provide for a referendum.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. In Houston County, in addition to all other
taxes imposed by law, the Houston County Commission may levy a
privilege or license tax in the amount prescribed in this
section against every person in the county engaging in the
business of renting or furnishing a room or rooms, lodging, or
accommodations to a transient in a hotel, motel, inn,
condominium, house, or another place in which rooms, lodgings,
or accommodations are regularly furnished to transients for a
consideration. The amount of the tax shall not exceed one
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 the county.
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 all of the following:
Charges for property sold or services furnished which are
required to be included in the tax levied by the state sales
tax act; charges for the rental of rooms, lodgings, or
accommodations to a person for a period of 30 continuous days
or more; or otherwise pursuant to the exemption provision of
Alabama's Transient Occupancy Tax, Section 40-26-1 of the Code
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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 section.
(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
otherwise provided, shall be due and payable to the Department
of Revenue on or before the 20th day of the month following
the month in which the tax accrues. Notwithstanding any
provision of this act providing for the responsibility of the
county to collect and administer the tax provided in this act,
the county may contract with an agent to perform all or any
part of its duties pursuant to this act. On or before the 20th
day of each month, every person on whom the tax is levied
shall render to the Department of Revenue, 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 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
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shall thereafter include in each monthly report all credit
collections made during the preceding month and shall pay the
amount of taxes computed thereon at the time of filing the
report.
(b) Every person engaged or continuing in a business
subject to the tax levied by this act shall 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 pursuant to this act. The
records shall be kept and preserved for a period of two years
and shall be open for examination at all times by the
Department of Revenue or by a duly authorized agent, deputy,
or employee of the county.
(c) A person who fails to pay the tax levied by this
section within the time required by this act 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 Department of Revenue,
if good and sufficient reason is shown, may waive or remit the
penalty or a portion of the penalty.
Section 4. All provisions of the state lodging tax
statutes with respect to payment, assessment, and collection
of the state lodging tax, making of reports and keeping and
preserving records, interest after due date of tax, or
otherwise; the adoption of rules with respect to the state
lodging tax; and the administration and enforcement of the
state lodging tax statutes, which are not inconsistent with
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state lodging tax statutes, which are not inconsistent with
the provisions of this act when applied to the tax levied by
this act, shall apply to the levied tax. The Department of
Revenue shall have and exercise the same powers, duties, and
obligations with respect to the district taxes levied as
imposed on the department 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.
Section 5. The Department of Revenue shall charge and
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. The net proceeds from the tax levied by this
act shall be deposited into the Houston County General Fund
and shall be used by the county for economic development
purposes and for the funding of recreational facilities in the
county.
Section 7. Sections 1 to 6, inclusive, of this act
shall become operative only if approved by a majority of the
qualified electors of Houston County who vote in an election
to be held on the day of the 2024 General Election. The notice
of the election shall be given by the judge of probate, which
notice shall be published once a week for three successive
weeks before the day of the election, and the election shall
be held, conducted, and the results canvassed in the manner as
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be held, conducted, and the results canvassed in the manner as
other county elections. The question shall be, "Do you favor
the adoption of Act No._______, of the 2024 Regular Session of
the Alabama Legislature, which authorizes the Houston County
Commission to levy a lodging tax in Houston County with the
proceeds earmarked for economic development and funding
recreational facilities? Yes ( ) No ( )." The county shall pay
any costs and expenses not otherwise reimbursed by a
governmental agency which are incidental to the election. If a
majority of the votes cast in the election are "Yes," Sections
1 to 6, inclusive, of this act shall become operative
immediately. If the majority of the votes are "No," this act
shall have no further effect. The Judge of Probate of Houston
County shall certify the results of the election to the
Secretary of State.
Section 8. This act shall become effective June 1,
2024.
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2024.
________________________________________________
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-24.
John Treadwell
Clerk
Senate 02-May-24 Passed
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