The proposed bill establishes a lodging tax and room fee in Elmore County, Alabama, retroactively effective from August 1, 2020. It imposes a privilege or license tax on transient room rentals, capped at 15.5% based on rates as of January 1, 2020, along with an additional $2 room fee for rentals outside Prattville's corporate limits. The bill also repeals previous sections of the Code of Alabama that authorized a lodging tax in Elmore County, specifically Sections 45-26-246 through 45-26-246.04 and 45-26-246.06, as well as Section 45-26-246.05.

The tax proceeds will be allocated to the Elmore County Lodging Fund, with 67% for county economic development and 33% distributed among municipalities where the tax was collected. The bill outlines taxpayer responsibilities for reporting and payment, including penalties for late payments, and allows the county to hire an agent for tax collection with a maximum 5% deduction for fees. Additionally, it amends current law regarding the distribution of tax proceeds to Prattville, requiring the Elmore County Commission to remit funds for economic development by March 31, 2022, and includes a retroactive provision validating prior tax collections under Act 2020-178. The act will take effect immediately upon passage and approval by the Governor.

Statutes affected:
Introduced: 45-26-246, 45-26-246, 45-26-246, 45-26-246
Enrolled: 45-26-246, 45-26-246, 45-26-246, 45-26-246