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HB204 ENROLLED
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HB204
PSTTSGG-2
By Representative Rehm (N & P)
RFD: Local Legislation
First Read: 13-Jan-26
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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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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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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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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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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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