HB219 By Representative Johnson (K) RFD Commerce and Small Business Rd 1 14-FEB-17

SYNOPSIS: This bill defines the term transient as used in Chapter 26 of Title 40 and would clarify the exemption provided to transactions governed by the Residential Landlord and Tenant Act as provided in Chapter 9A of Title 35.

A BILL TO BE ENTITLED AN ACT

To amend Section 40-26-1, Code of Alabama 1975, relating to transient occupancy tax; to define transient; to clarify exemption provided to transactions governed by Chapter 9A of Title 35.

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

§40-26-1.

"(a) 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 or company, as defined in Section 40-23-1, Code of Alabama 1975, 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. The term transient, as used in this section, shall mean any person or company to whom one or more room or rooms, meeting rooms, lodgings, living quarters, or sleeping or housekeeping accommodations, or other accommodations are rented or furnished. 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.

"(b) 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; (iv) or transactions governed by the Alabama Uniform Residential Landlord and Tenant Act as provided in Chapter 9A of Title 35.

"(c) 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 hereby repealed.