SB241 Summary

• Amends Section 40-26-1 of the Code of Alabama 1975 to add specific definitions for terms used in the transient occupancy tax chapter, clarifying the Department of Revenue's policy and interpretation of existing law.

• Defines key terms including "accommodation," "commissioner," "department," "person or company," "renting or furnishing," "taxpayer," and "transient" (any person renting accommodations for less than 180 continuous days).

• Establishes a privilege or license tax of 5 percent on room charges in 16 counties in the Alabama mountain lakes area (Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston) and 4 percent in all other counties.

• Exempts from the tax accommodations supplied for 180 continuous days or more, and those provided by nonprofit organizations or privately operated camps and conference centers offering educational or recreational programs exclusively for children, students, or nonprofit organization members.

• Becomes effective immediately upon passage and approval by the Governor.