Lodgings tax is a privilege tax on persons, firms, and corporations engaged in the renting or furnishing of rooms, lodgings or other accommodations to transients for periods of less than 180 days of continuous occupations and applies to all charges for personal property used or furnished in such rooms or lodgings.
For transactions entered into on or after October 1, 2019, the tax shall not apply to marine slips, places or spaces for tent camping, or places or spaces provided for motor homes, travel trailers, self-propelled campers or house cars, truck campers, or similar recreational vehicles commonly known as R.V. s, which are supplied for a period of 90 continuous days or more in any place.
The lodging tax is due monthly with returns and remittances to be filed on or before the 20th day of the month for the previous month’s lodgings. However, pursuant to Section 40-23-7, Code of Alabama 1975, you may request quarterly filing status if you have a tax liability of less than $2,400.00 for the preceding calendar year. You may request bi-annual filing if you have a tax liability of less than $1,200 for the preceding calendar year. You may also request bi-annual filing if you provided accommodations during no more than two thirty consecutive day periods during the preceding calendar year. You may request annual filing status if the tax liability for the entire preceding calendar year is less than $600.00. You may also request annual filing if you provided accommodations during no more than one thirty consecutive day period during the preceding calendar year. Changes to the filing status can only be requested each year before February 20th in order to file quarterly, bi-annually or annually for that calendar year. Note: If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.
The return must be submitted on or before the next working day to be timely filed.
Yes. A discount is allowed if the tax is paid before the 20th day of the month in which the tax is due. The lodgings tax discount consists of 5% on the first $100 of tax due, and 2% of all tax over $100. However, non-state administered local taxes that may be filed through MAT/ONE SPOT may have a different discount rate and MAT has been programmed accordingly.
Yes. Penalty and interest is due if the tax is paid after the 20th day of the month in which the tax is due. The Failure to Timely File Penalty is 10% of the tax required to be paid or $50.00, whichever is greater. The Failure to Timely Pay Penalty is 10% of the tax required to be paid. Interest is due at the current rate. Note: If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid. View interest rates Learn more
Yes. Once an account has been established for your business, no matter what type of tax account you have, a tax return must be filed for each month even though no tax is due.
If the third party platform/facilitator remits all the state and local lodging taxes for the transactions made through the platform/facilitator, you do not need a state lodging account or a local lodgings account.
If you will be making lodging transactions yourself and also using a third party platform/facilitator, you must obtain a state and local lodging tax account to file and pay taxes on the lodging transactions you made. NOTE: You should report any third party/facilitator transactions on the state and local lodging tax return and then deduct those transactions to arrive at the net taxable gross proceeds.
No. Third party platforms/facilitators do not provide a listing of how much lodging taxes is applied to any individual or specific lodging addresses.
Local lodgings tax is levied in the same manner as the state lodgings tax; these rates vary. However, we do not administer all county or city lodgings taxes. Therefore, be advised to contact all counties and municipalities in which you do business in order to determine if you should register with them to collect their local tax. The same filing status and due date applicable to the state lodging tax is applicable to local lodging tax. Note: If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.
Section 40-26-1 provides the following exemptions from lodging taxes as listed below: