AL HB392

Amends Section 40-26-1 of the Alabama Code to clarify that rentals of hotel, motel, inn, and similar facility areas not used as temporary sleeping accommodations for transients are exempt from lodging tax.

Excludes convention facilities, banquet halls, and meeting rooms from lodging tax applicability and amusement or sales tax classification under Chapter 23.

Rental portions that are not rooms, lodgings, or accommodations shall not be subject to any lodging tax levied by law.

Applies to Alabama mountain lakes region counties (Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston) at 5 percent tax rate and all other counties at 4 percent rate.

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