Alabama 2024 Regular Session

Alabama Senate Bill SB150 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	SB150ENGROSSED
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3	3		SB150
4		-	F36KD5D-3
	4	+	F36KD5D-2
5	5		By Senator Gudger
6	6		RFD: Finance and Taxation General Fund
7	7		First Read: 20-Feb-24
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12		-	5 SB150 ~~Enrolled~~
	12	+	5 SB150 Engrossed
13	13		Page 1
14	14		First Read: 20-Feb-24
15		-	Enrolled, An Act,
	15	+	A BILL
	16	+	TO BE ENTITLED
	17	+	AN ACT
16	18		Relating to transient occupancy tax; to establish the
17	19		Alabama Tourism Tax Protection Act of 2024; to define an
18	20		accommodations intermediary, accommodations provider, and room
19	21		charge; and to provide that an accommodations provider
20	22		intermediary shall collect the tax imposed.
21	23		BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
22	24		Section 1. Section 40-26-1.1 is added to the Code of
23	25		Alabama 1975, to read as follows:
24	26		§40-26-1.1.
25	27		(a) This act shall be known and cited as the Alabama
26	28		Tourism Tax Protection Act of 2024.
27	29		(b) For the purposes of this act, the following terms
28	30		have the following meanings:
29	31		(1) ACCOMMODATIONS INTERMEDIARY. Any person, firm, or
30	32		corporation, other than an accommodations provider, that
31	33		facilitates renting, furnishing, lodging, or accommodation
32	34		transactions subject to the tax levied under Section 40-26-1
33	35		and charges a room fee or an accommodations fee to the
34	36		customer, which it retains as compensation for such
35	37		facilitation. Facilitating transactions include brokering,
36		-	coordinating, or in any other way arranging for the purchase
37		-	of the right to use accommodations via a transaction directly,
38		-	including via one or more payment processors, between a
39		-	customer and an accommodations provider.
40		-	(2) ACCOMMODATIONS PROVIDER. Any person, firm, or
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68		-	28 SB150 ~~Enrolled~~
	65	+	28 SB150 Engrossed
69	66		Page 2
	67	+	facilitation. Facilitating transactions include brokering,
	68	+	coordinating, or in any other way arranging for the purchase
	69	+	of the right to use accommodations via a transaction directly,
	70	+	including via one or more payment processors, between a
	71	+	customer and an accommodations provider.
70	72		(2) ACCOMMODATIONS PROVIDER. Any person, firm, or
71	73		corporation engaging in the business of transactions subject
72	74		to the tax levied under Section 40-26-1 that has an active
73	75		lodgings tax account with the department and collects and
74	76		remits lodgings tax on such accommodations that are rented
75	77		directly by the owner of such accommodation.
76	78		(3) HOTEL. Any public lodging establishment that is
77	79		owned by a single entity or person; contains 15 or more
78	80		individual sleeping room accommodations; offers rental units
79	81		with daily or weekly rates; has a central office on the
80	82		property with specified hours of operation; has a bathroom for
81	83		each rental unit; is recognized as a hotel in the community in
82	84		which it is situated; and possesses a permit from the Alabama
83	85		Department of Public Health to operate as a hotel.
84	86		(4) MERCHANT OF RECORD. The legally authorized and
85	87		responsible entity that processes customer payments for the
86	88		sale of goods or services within the state of Alabama.
87	89		(5) PROFESSIONAL PROPERTY MANAGEMENT COMPANY. A
88	90		licensed real estate brokerage firm with a physical storefront
89	91		location authorized and licensed under Section 34-27-30 to
90	92		engage in the business of property management services on
91	93		behalf of property owners.
92	94		(6) ROOM CHARGE. The full retail price paid by the
93	95		guest for an accommodation, including any accommodations fee
94		-	and any other fees or charges. This includes the charge for
95		-	use or rental of personal property and services furnished in
96		-	the room or accommodation.
97		-	(c) Except as provided for in subsection (d), the
98		-	accommodations intermediary shall collect and remit the tax
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	123	+	56 SB150 Engrossed
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	125	+	guest for an accommodation, including any accommodations fee
	126	+	and any other fees or charges. This includes the charge for
	127	+	use or rental of personal property and services furnished in
	128	+	the room or accommodation.
	129	+	(c) Except as provided for in subsection (d), the
128	130		accommodations intermediary shall collect and remit the tax
129	131		imposed pursuant to this chapter for the facilitation of
130	132		lodgings transactions subject to the tax levied under Section
131	133		40-26-1, and parallel local levies, for transactions occurring
132	134		on or after January 1, 2025. The tax shall be imposed on the
133	135		room charge as defined in this section.
134	136		(d) When an accommodations intermediary facilitates the
135	137		transaction on behalf of an accommodations provider as defined
136	138		in this section, the taxes collected may be remitted to the
137	139		accommodations provider when there is an executed written
138	140		agreement or contract specifying the responsible party for
139	141		remitting such taxes.
140	142		(e) An accommodations intermediary collecting and
141	143		remitting taxes pursuant to subsection (d) shall not be liable
142	144		for taxes not remitted by the accommodations provider to the
143	145		Department of Revenue.
144	146		(f) In any accommodation in which an accommodations
145	147		intermediary facilitates the sale of the accommodation, the
146	148		accommodations intermediary shall separately state the amount
147	149		of the tax on the bill, invoice, or similar documentation and
148	150		shall add the tax to the room charge; thereafter, such tax
149	151		shall be a debt from the customer to the accommodations
150	152		intermediary.
151	153		(g) Every accommodations intermediary and
152		-	accommodations provider shall annually submit a report
153		-	prescribed by the Department of Revenue that includes the
154		-	physical address of each accommodation that was rented or
155		-	furnished greater than 14 days during the previous year. The
156		-	report provided herein is confidential taxpayer information
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184		-	84 SB150 ~~Enrolled~~
	181	+	84 SB150 Engrossed
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	183	+	(g) Every accommodations intermediary and
	184	+	accommodations provider shall annually submit a report
	185	+	prescribed by the Department of Revenue that includes the
	186	+	physical address of each accommodation that was rented or
	187	+	furnished greater than 14 days during the previous year. The
186	188		report provided herein is confidential taxpayer information
187	189		protected under Section 40-2A-10.
188	190		(h) The following entities shall be exempt from the
189	191		provisions of Section 1 of this act:
190	192		(1) Professional property management companies that
191	193		either collect and remit the tax levied pursuant Section
192	194		40-26-1, or manage properties leased for a month or more as
193	195		the principal residence of the tenant.
194	196		(2) Hotels that collect and remit the tax levied
195	197		pursuant to Section 40-26-1.
196	198		(3) A destination marketing organization whose primary
197	199		purpose is the promotion of tourism and receives funding from
198	200		taxes collected and remitted pursuant to Section 40-26-1.
199	201		(4) Providers of accommodations defined under
200	202		subsection (d) of 40-26-1, that collect and remit the tax
201	203		levied pursuant to Section 40-26-1.
202	204		Section 2. For any accommodations transactions, subject
203	205		to the tax levied in Section 40-26-1, through an
204	206		accommodations intermediary where the accommodations provider
205	207		has hired a professional property management company to
206	208		oversee, the professional property management company shall be
207	209		the merchant of record for such transactions.
208	210		Section 3. The Department of Revenue shall adopt rules
209	211		for the implementation and administration of this act.
210		-	Section 4. This act shall become effective October 1,
211		-	2024.
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	241	+	for the implementation and administration of this act.
	242	+	Section 4. This act shall become effective October 1,
238	243		2024.
239		-	________________________________________________
240		-	President and Presiding Officer of the Senate
241		-	________________________________________________
242		-	Speaker of the House of Representatives
243		-	SB150
244		-	Senate 04-Apr-24
245		-	I hereby certify that the within Act originated in and passed
246		-	the Senate, as amended.
	244	+	113
	245	+	114 SB150 Engrossed
	246	+	Page 6
	247	+	2024.
	248	+	Senate
	249	+	Read for the first time and referred
	250	+	to the Senate committee on Finance
	251	+	and Taxation General Fund
	252	+	................20-Feb-24
	253	+	Read for the second time and placed
	254	+	on the calendar:
	255	+	0 amendments
	256	+	................20-Mar-24
	257	+	Read for the third time and passed
	258	+	as amended
	259	+	Yeas 33
	260	+	Nays 0
	261	+	Abstains 0
	262	+	................04-Apr-24
247	263		Patrick Harris,
248	264		Secretary.
249		-	House of Representatives
250		-	Passed: 02-May-24
251		-	By: Senator Gudger
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