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HB204 • 2026

Henry County; county lodging tax further provided for

Henry County; county lodging tax further provided for

Housing Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rehm
Last action
2026-02-03
Official status
Enacted
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on penalties for non-compliance or the exact use of collected funds beyond economic development and tourism promotion.

Henry County Lodging Tax Law

This law allows Henry County to collect a lodging tax from hotels, motels, and other places that rent rooms or accommodations to visitors for less than 30 days.

What This Bill Does

  • Allows the Henry County Commission to charge up to four percent of the cost as a tax on hotel stays and similar services.
  • Exempts charges required by state sales tax laws from this lodging tax.
  • Requires hotels and other businesses that rent rooms or accommodations to report their earnings and pay taxes monthly.

Who It Names or Affects

  • Hotels, motels, inns, condominiums, houses, recreational vehicle parks, and other places that rent rooms or accommodations to visitors.
  • Visitors who stay at these places for less than 30 days will pay the tax as part of their accommodation costs.

Terms To Know

Transient
A person staying temporarily in a place, usually for less than 30 days.
Lodging Tax
A tax charged on hotel stays and similar services provided to visitors.

Limits and Unknowns

  • The law does not specify how the collected taxes will be used beyond mentioning economic development and tourism promotion.
  • It is unclear if there are any penalties for businesses that do not comply with the reporting requirements.

Bill History

  1. 2026-02-03 House

    Enacted

  2. 2026-01-27 Senate

    Signature Requested

  3. 2026-01-27 House

    Delivered to Governor

  4. 2026-01-22 Senate

    Motion to Read a Third Time and Pass - Adopted Roll Call 107 (Yeas 31, Nays 0)

  5. 2026-01-22 Senate

    Third Reading in Second House (Yeas 32, Nays 0)

  6. 2026-01-22 House

    Enrolled

  7. 2026-01-22 House

    Ready to Enroll

  8. 2026-01-21 Senate

    Read for the Second Time and placed on the Calendar

  9. 2026-01-21 Senate

    Reported Out of Committee Second House

  10. 2026-01-20 House

    Motion to Read a Third Time and Pass - Adopted Roll Call 35 (Yeas 11, Nays 0)

  11. 2026-01-20 House

    Third Reading in House of Origin (Yeas 51, Nays 0)

  12. 2026-01-20 Senate

    Pending Committee Action in Second House

  13. 2026-01-20 Senate

    Read for the first time and referred to the Senate Committee on Local Legislation

  14. 2026-01-15 House

    Read for the Second Time and placed on the Calendar

  15. 2026-01-15 House

    Reported Out of Committee House of Origin

  16. 2026-01-13 House

    Pending Committee Action in House of Origin

  17. 2026-01-13 House

    Read for the first time and referred to the House Committee on Local Legislation

Official Summary Text

Henry County; county lodging tax further provided for

Current Bill Text

Read the full stored bill text
HB204 ENROLLED
Page 0
HB204
PSTTSGG-2
By Representative Rehm (N & P)
RFD: Local Legislation
First Read: 13-Jan-26
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HB204 Enrolled
Page 1
First Read: 13-Jan-26
Enrolled, An Act,
Relating to Henry County; to amend Section 45-34-243,
Code of Alabama 1975; to further provide for the county
lodging tax.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 45-34-243, Code of Alabama 1975, is
amended to read as follows:
"§45-34-243
(a) In Henry County, in In addition to all other taxes
imposed by law, the Henry 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, accommodation to a transient in a hotel,
motel, inn, condominium, house, recreational vehicle park as
defined in Section 35-15-30, or another other place in which
rooms, lodgings, or accommodations are regularly furnished to
transients for a consideration. The amount of the tax shall
not exceed four 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.
(b)(1) There are exempted from the provisions of the
tax levied by this section and from the computation of the
amount of the tax levied or payable all both of the following:
a. Charges for property sold or services furnished that
are required to be included in the tax levied by the state
sales tax act ;.
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HB204 Enrolled
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sales tax act ;.
b. charges 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. 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.
(2) 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.
(c)(1) The tax levied by this section, except as
otherwise provided, shall be due and payable to the Department
of Revenue on or before the 20th day of the month next
succeeding the month in which the tax accrues. Notwithstanding
any provision of this section providing for the responsibility
of the county to collect and administer the tax provided in
this section, the county may contract with an agent to perform
all or any part of its duties pursuant to this section. On or
before the 20th day of each month, every person on whom the
tax is levied by this section 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 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
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HB204 Enrolled
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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 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.
(2) It shall be the duty of every person engaged or
continuing in a business subject to the tax levied by this
section 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
pursuant to this section. 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.
(3) A person who fails to pay the tax levied by this
section 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 Department of Revenue,
if good and sufficient reason be shown, may waive or remit the
penalty or a portion of the penalty.
(d) 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
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HB204 Enrolled
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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, that are not inconsistent with
this section when applied to the tax levied by this section,
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 section, to the taxes levied, and to the administration
of this section are incorporated herein by reference and made
a part as if fully set forth.
(e) 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.
(f) The net proceeds from the tax levied by this
section shall be deposited into the Henry County General Fund
and shall be used by the county for economic development
purposes and for the promotion of tourism."
Section 2. This act shall become effective on October
1, 2026.
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HB204 Enrolled
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1, 2026.
________________________________________________
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 20-Jan-26.
John Treadwell
Clerk
Senate 22-Jan-26 Passed
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