AL HB541

Amends Section 40-26-1 of the Alabama Code to define "transient" as any person to whom one or more rooms, meeting rooms, lodgings, living quarters, or sleeping or housekeeping accommodations are rented or furnished.

Clarifies that the entity collecting rental charges for accommodations shall be responsible for remitting the transient occupancy tax to the Department, with tax due on total rental amounts including service charges.

Imposes a 5% transient occupancy tax in Alabama mountain lakes counties (Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston) and 4% in all other counties.

Provides exemptions from the tax for rentals of 180 continuous days or more, nonprofit and privately operated camps or conference centers for educational or recreational programs, residential leasehold agreements, and corporate relocations with documented economic development incentives.

Becomes effective on the first day of the third month following passage and approval by the Governor.