SB395

ENGROSSED

By Senator Pittman

A BILL TO BE ENTITLED AN ACT

To amend Section 40-26-1, Code of Alabama 1975, relating to transient occupancy tax; to provide that the rental of any portion of a hotel, motel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients which is used as a meeting place for any conference, seminar, or other activity not intended or otherwise suitable for an overnight stay for sleeping purposes is exempt from transient occupancy tax.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-26-1, Code of Alabama 1975, is 10 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 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.

"(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.

"(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.

"(d) The rental of rooms, lodgings, or accommodations that are neither intended nor suitable for overnight sleeping purposes are exempt from the tax levied hereunder if the charges for this rental are separately stated and the accommodations are used exclusively as a meeting room for any conference, seminar, club meeting, private party or similar type activity. The gross receipts from the separately stated rental charges of such meeting rooms are also exempt from the tax levied by Chapter 23 of Title 40."

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 All laws or parts of laws which conflict with this act are hereby repealed.

Section 3. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or upon its otherwise becoming law.

Taxation

Lodging Tax

Transient Occupancy Tax

Hotels and Motels

Code Amended