SB313

By Senator Chambliss

ENROLLED, An Act,

Relating to Elmore County; authorizing the levy of a lodging tax and providing for the distribution of the proceeds from the tax.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. In Elmore County, in addition to all other taxes imposed by law, the Elmore County Commission may levy a privilege or license tax in the amount prescribed in this section against every person within the county engaging in the business of renting or furnishing a room or rooms, lodging or accommodations, to a transient in a hotel, motel, inn, condominium, house, tourist court, or another place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration. The amount of the tax shall be equal to a percent of the charge for the rooms, lodgings, or accommodations, including the charge for use of rental or personal property and services furnished in the room or rooms within Elmore County equal to a percent in the corporate limits of each municipality levying a lodging tax and a percent in the remainder of the county outside of the corporate limits of any municipality levying a lodging tax so that the total lodging tax levied in each municipality levying a lodging tax on January 1, 2020, and in the remainder of the county outside of the corporate limits of any municipality levying a lodging tax is equal to 15.5 percent, based on the lodging tax levied by any municipality on January 1, 2020, except in any municipality levying a lodging tax on January 1, 2020, equal to or exceeding 15.5 percent, no additional lodging tax shall be levied. In any municipality where the municipality levies both a lodging tax and a cooperative district assessment for lodging, the lodging tax and the cooperative district assessment fee on lodging at any lodging establishment shall be added together and the total tax and fees on lodging at the establishments shall not exceed the 15.5% considering the combined lodging tax and cooperative district assessment fee that was in effect as of January 1, 2020. In the event that a lodging tax and a cooperative district assessment fee on lodging is required to be added together, the county shall receive a minimum of two percent of the lodging tax levied by this act prior to distribution to a municipality as provided in this act. In addition, the Elmore County Commission may levy an additional room fee on the rental of a room subject to the lodging tax in the amount of two dollars ($2) in order to equalize the room fee in Elmore County with the present rate in the City of Prattville in Autauga County.

Section 2. (a) There are exempted from the provisions of the tax levied by this act and from the computation of the amount of the tax levied or payable all of the following: Charges for property sold or services furnished which are required to be included in the tax levied by the state sales tax act; charges for the rental of rooms, lodgings, or accommodations to a person for a period of 30 continuous days or more pursuant to the exemption provision of Alabama's Transient Occupancy Tax, Section 40-26-1 of the Code of Alabama 1975. A subsequent amendment or change to the Alabama Transient Occupancy Tax shall also have the effect of similarly changing the exemption provision of this act.

(b) Notwithstanding the provisions of this section, the tax shall not apply to the rental of living accommodations which are intended primarily for rental to persons as their principal or permanent place of residence.

Section 3. (a) The tax levied by this act, except as otherwise provided, shall be due and payable to Elmore County on or before the 20th day of the month next succeeding the month in which the tax accrues. Notwithstanding any provision of this act providing for the responsibility of the county to collect and administer the tax provided in this act, the county may contract with an agent to perform all or any part of its duties pursuant to this act. On or before the 20th day of each month, every person on whom the tax is levied by this act shall render to the county on a form prescribed by the department, a true and correct statement showing the gross proceeds of the business subject to the tax for the then preceding month, together with other information as the county requires. At the time of making the monthly report, the taxpayer shall compute and pay to the county the amount of tax shown due. A person subject to the tax who conducts business on a credit basis may defer reporting and paying the tax until after the person has received payment of the items, articles, or accommodations furnished. In the event the taxpayer defers reporting and paying the taxes, he or she shall thereafter include in each monthly report all credit collections made during the then preceding month and shall pay the amount of taxes computed thereon at the time of filing the report.

(b) It shall be the duty of every person engaged or continuing in a business subject to the tax levied by this act to keep and preserve suitable records of the gross proceeds of the business and other books or accounts necessary to determine the amount of tax for which he or she is liable pursuant to this act. The records shall be kept and preserved for a period of two years and shall be open for examination at all times by the county or by a duly authorized agent, deputy, or employee of the county.

(c) A person who fails to pay the tax levied by this act within the time required by this act shall pay in addition to the tax a penalty of 10 percent of the amount of tax due, together with interest from the date on which the tax became due and payable at the rate due and payable on the state lodging tax. The penalty and interest shall be assessed and collected as a part of the tax. The county may, if good and sufficient reason be shown, waive or remit the penalty or a portion of the penalty.

Section 4. All provisions of the state lodging tax statutes with respect to payment, assessment, and collection of the state lodging tax, making of reports and keeping and preserving records, interest after due date of tax, or otherwise; the promulgation of rules with respect to the state lodging tax; and the administration and enforcement of the state lodging tax statutes, which are not inconsistent with the provisions of this act when applied to the tax levied by this act, shall apply to the levied tax. The county shall have and exercise the same powers, duties, and obligations with respect to the district taxes levied as imposed on the Commissioner of the Department of Revenue and the department, respectively, by the state lodging tax statutes. All provisions of the state lodging tax statutes that are made applicable to this act, to the taxes levied, and to the administration of this act are incorporated herein by reference and made a part as if fully set forth.

Section 5. The county shall contract with an agent for collection of the tax and the agent may deduct from the proceeds of the tax levied an amount equal to the contracted amount for the collections, provided the charge does not exceed five percent of the total amount of tax collected. Following that deduction, the agent shall pay the remainder of the tax proceeds to the county.

Section 6. Except as otherwise provided in this act, the balance of the proceeds from the tax levied by this act shall be deposited into the Elmore County Lodging Fund. The net proceeds from the tax collected outside of the municipalities shall be used by the county for economic development purposes. Sixty-seven percent of the remaining funds in the Lodging Fund shall be used by the county for economic development purposes. Thirty-three percent of the remaining funds in the Lodging Fund shall be distributed to the municipalities on an equal basis where the lodging tax was collected to be used by the municipality for economic development purposes pursuant to an agreement with Elmore County. If Elmore County and any municipality fail to agree on the use of the funds by the municipality, that portion shall revert to the Lodging Fund for appropriation by the county for economic development purposes. All of the net proceeds from any room fees shall be deposited in the Elmore County Lodging Fund to be used by the county for economic development purposes. All funds in the Elmore County Lodging Fund shall be used for economic development purposes as determined by the Elmore County Commission.

Section 7. The provisions of this act shall not be applied in a manner to violate the Commerce Clause of the United States Constitution. If a provision of this act is held invalid, the invalidity shall not affect the remaining provisions of this act.

Section 8. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Elmore County

Taxation

Lodging Tax

Counties