HB54 Summary

• Amends Alabama Code Section 40-26-1 to exclude certain room and space rentals from the state lodging tax if they are not intended, suitable, or used for overnight sleeping purposes.

• Exempts charges for rentals of ballrooms, dining rooms, conference rooms, wedding chapels, and similar spaces from the transient occupancy tax when charges are separately stated and the space is used exclusively for meetings, conferences, seminars, or private parties.

• The exemption applies only to the transient occupancy tax under Chapter 40-26 and separately stated rental charges for excluded spaces, not to other taxes, licenses, or fees.

• Applies to the 16-county Alabama mountain lakes area (Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston) taxed at 5 percent, and all other counties taxed at 4 percent.

• Takes effect on the first day of the third month following passage and approval by the Governor.