HB 291 Summary

• Amends Alabama Code Section 40-26-1 to exclude rental charges for ballrooms, dining rooms, club rooms, sample rooms, conference rooms, wedding chapels, and similar spaces from lodging tax if not intended for or used for overnight sleeping purposes.

• Requires that charges for non-sleeping spaces be separately stated by the facility and used exclusively for meetings, conferences, seminars, club meetings, private parties, or similar activities to qualify for the exemption.

• Applies the exemption solely to the transient occupancy tax under Chapter 26 of Title 40, while also excluding such separately stated rental charges from sales taxes under Chapter 23 of Title 40.

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