Etowah County, privilege and license tax on lodging, time of continuous supply for tax exemption increased

HB632 ENROLLED
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HB632
SLDFH87-2
By Representative Butler (N & P)
RFD: Local Legislation
First Read: 17-Mar-26
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HB632 Enrolled
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First Read: 17-Mar-26
Enrolled, An Act,
Relating to Etowah County; to amend Section 45-28-243,
Code of Alabama 1975; to increase the amount of time necessary
for accommodations supplied to be exempt from privilege and
license tax in the county.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 45-28-243 of the Code of Alabama
1975, is amended to read as follows:
"§45-28-243
(a) In Etowah County, there is hereby levied and
imposed, in addition to all other taxes of every kind now
imposed by law, a privilege or license tax upon every person,
firm, or corporation engaging in the business of renting or
furnishing any room or rooms, lodging, or accommodations to
transients in any hotel, motel, inn, tourist camp, tourist
cabin, or any other place in which rooms, lodgings, or
accommodations are regularly furnished to transients for a
consideration, in an amount of two percent of the charge for
such room, rooms, lodgings, or accommodations, including the
charge for use or rental of personal property and services
furnished in such the room. There is exempted from the tax
levied under this section any taxes on rentals or services
under Division 1, commencing with Section 40-23-1, of Article
1, Chapter 23, Title 40. The tax shall not apply to rooms,
lodgings, or accommodations supplied for a period of 30 180
continuous days or more in any place.
(b) Municipal privilege license taxes which are levied
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HB632 Enrolled
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(b) Municipal privilege license taxes which are levied
and collected by the application of a flat percentage rate on
gross sales or gross receipts from sales , and which are passed
on directly by the licensee-seller to the purchaser-consumer
or user shall be excluded from gross sales or gross receipts ,
as the case may be, in the computation of the tax herein
levied in this section .
(c) The tax herein levied in this section shall be
collected in the same manner as the state lodgings tax as
provided in Chapter 26, Title 40 , and shall be additional
thereto; and the net proceeds thereof of the tax shall be
payable to the county general fund for the purposes on of
promoting tourism and beautification. Such The funds shall be
used as follows: Fifty percent for the support and promotion
of tourism and fifty 50 percent for the support and promotion
of beautification and ecology as determined by the resolutions
of the Clean and Beautiful Community Commission and the
Gadsden-Etowah County Tourism Board. The State Department of
Revenue shall promulgate such adopt rules and regulations and
provide such forms and instructions as are necessary to
implement this section."
Section 2. This act shall become effective on October
1, 2026.
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HB632 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 31-Mar-26.
John Treadwell
Clerk
Senate 09-Apr-26 Passed
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