SB241 By Senator Pittman RFD Finance and Taxation General Fund Rd 1 16-FEB-16

SYNOPSIS: This bill would specifically include definitions in the chapter of the transient occupancy tax levy, clarifying the Department of Revenue’s policy and interpretation of existing law.

A BILL TO BE ENTITLED AN ACT

To amend Section 40-26-1, Code of Alabama 1975, relating to transient occupancy tax; to include definitions.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-26-1 of the Code of Alabama 1975, is amended to read as follows:

§40-26-1.

"(a) For the purpose of this chapter, the following terms shall have the respective meanings ascribed by this section:

"(1) ACCOMMODATION. The renting or furnishing of any room or rooms, living quarters, sleeping or housekeeping space in any hotel, motel, rooming house, apartment house, lodge, inn, tourist cabin, tourist court, tourist home, camp, campsite, trailer court, marina, convention center, recreational trailer parking space, boat docking slip, meeting rooms, or any other such space where living quarters, sleeping or housekeeping is made available to the public for a consideration.

"(2) COMMISSIONER. The Commissioner of Revenue of the State of Alabama.

"(3) DEPARTMENT. The Department of Revenue of the State of Alabama.

"(4) PERSON or COMPANY. Used interchangeably, includes any individual, firm, copartnership, association, corporation, receiver, trustee, or any other group or combination acting as a unit and the plural as well as the singular number, unless the intention to give a more limited meaning is disclosed by the context.

"(5) RENTING or FURNISHING. The lease, let, or rental of living quarters or sleeping or housekeeping accommodations, or other accommodations, as defined in this section, supplied for a consideration to travelers, tourists, tenants, or other transient guests.

"(6) TAXPAYER. Any person liable for taxes levied under this chapter.

"(7) TRANSIENT. Any person to whom a room or rooms, lodgings, or other accommodations are rented or furnished for a period of less than 180 continuous days.

"(a) (b) There is levied and imposed, in addition to all other taxes of every kind now imposed by law, a privilege or license tax upon every person, firm, or corporation engaging in the business of renting or furnishing any room or rooms, lodging, or accommodations to transients in any hotel, motel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration, in any county which is located in the geographic region comprising the Alabama mountain lakes area, those being Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston, in an amount to be determined by the application of the rate of five percent of the charge for such room, rooms, lodgings, or accommodations, including the charge for use or rental of personal property and services furnished in such room, and the rate of four percent of the charge in every other county. There is exempted from the tax levied under this chapter any rentals or services taxed under Division 1 of Article 1 of Chapter 23 of this title. The tax shall be due on the total rental charged for such accommodations, as defined in subsection (a), by the person charging or collecting the rental.

"(b) (c) The tax shall not apply to rooms, lodgings, or accommodations supplied: (i) For a period of 180 continuous days or more in any place; (ii) by camps, conference centers, or similar facilities operated by nonprofit organizations primarily for the benefit of, and in connection with, recreational or educational programs for children, students, or members or guests of other nonprofit organizations during any calendar year; or (iii) by privately operated camps, conference centers, or similar facilities that provide lodging and recreational or educational programs exclusively for the benefit of children, students, or members or guests of nonprofit organizations during any calendar year.

"(c) (d) For purposes of subsection (b): "Children" means individuals under age 21; "student" is defined in accordance with 26 U.S.C. §151(c)(4), as in effect from time to time or by any successor law; "nonprofit organization" is an organization exempt from federal income tax under 26 U.S.C. §501(c)(3), as in effect from time to time or any successor law; and "privately operated" refers to any camp, conference center, or similar facility other than those operated by a nonprofit organization as herein defined."

Section 2. All laws or parts of laws which conflict with this act are repealed.