The Alabama 4% lodgings tax rate applies to all counties except for those in the Alabama Mountain Lakes Area. Those counties in the Alabama Mountain Lakes Area include Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan and Winston, and are subject to the 5% Alabama lodgings tax rate.
The return and remittance are due on or before the twentieth day of the month following the month during which tax is accrued. NOTE: EFT payment information must be transmitted by 4:00 p.m. CST (Central Standard Time) on or before the due date, to be considered timely paid.
Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.
FIRST TIME USERS: The Lodgings Tax Return will not have any counties shown on the return if you are a first time user. To add counties to the return, select the "Add/Delete Counties" button at the top right portion of the page. This will take you to the "Choose County" page. Follow the steps below to "add or delete counties to the lodgings tax return." For instructions on uploading a file, click here.
ALL OTHER USERS: The Lodgings Tax Return will be customized for you with the counties that you previously added or deleted to or from your return.
|ADD OR DELETE COUNTIES TO THE LODGINGS TAX RETURN: 1. From the "Choose County" page, select the counties that you wish to add to your return by clicking the check box next to the county name, then press the "Continue" button. 2. You are now ready to complete the Lodgings Tax Return which now contains all the counties that you selected to add to your return.|
Instructions For Filing Alabama Lodgings Tax Returns
|Report state lodgings tax by county business locations. If you have multiple business locations in the same county, the amounts should be combined and reported in aggregate for that county.|
|GROSS CHARGES (BOTH CASH AND CREDIT) FROM RENTAL OF ROOMS, LODGINGS, ACCOMODATIONS, AND SERVICES FURNISHED FOR THE PERIOD COVERED BY THIS REPORT: For each county location, report total gross charges, and total collections during the month on credit charges previously claimed as deductions.|
|TOTAL DEDUCTIONS: For each county location, enter total deductions. Credit charges reported but not collected, and receipts from lodgings supplied for 180 or more continuous days to the same occupant may be deducted. NOTE: Deductions for each line on the return should not exceed the amount reported in the corresponding "gross charges " field. For each line on the return, if deductions exceed the gross charges, deductions will be adjusted to the amount reported in the gross charges field, reflecting the taxable amount on the corresponding line as zero. Valid excess deductions can be claimed on subsequent returns, or you can file an amended return or petition for refund. For more information on filing an amended return or petition for refund, please call the Alabama Department of Revenue at 334-242-1490.|
|TAXABLE AMOUNT: For each line on the return, total of deductions will be subtracted from total gross charges to obtain the measure of tax.|
|TAX RATE: The tax rate of the county will be indicated.|
|GROSS TAX: For each line on the return, gross tax will be calculated based on the Taxable Amount x the tax rate.|
|TOTAL TAX DUE: The TOTAL TAX DUE is the sum of the GROSS TAX for each line on the return.|
|DISCOUNT: A discount is allowed for timely payment of the TOTAL TAX DUE and is calculated as follows: 5% on the 1st $100.00 of tax due, plus 2% of all tax over $100.00.|
|PENALTY AND INTEREST, IF DUE: Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the TOTAL TAX DUE or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621. (Click here to determine current interest rates.)|
|LESS CREDIT FOR PREVIOUS OVERPAYMENT: Use this line to claim an amount of credit for a prior overpayment. The credit claimed will be applied to reduce the tax liability shown on the return. NOTE: Any credit for prior overpayment must be approved in advance by the ADOR. Credit claimed should not exceed the result of TOTAL TAX DUE less (Discount) plus (Penalty & Interest). Valid excess credit can be claimed on subsequent returns.|
|TOTAL AMOUNT DUE: The total amount due is the result of TOTAL TAX DUE less Discount plus Penalty & Interest less Approved Credit Claimed.|