This bill pertains to Henry County, Alabama, and authorizes the Henry County Commission to levy a lodging tax on businesses providing accommodations to transients, such as hotels, motels, inns, and similar establishments. The tax rate is capped at four percent of the charge for rooms, lodgings, or accommodations. The bill includes exemptions from the tax, such as charges that are already included in the state sales tax, rentals for periods of 30 continuous days or more, and accommodations intended primarily for permanent residence. It also states that any changes to the Alabama Transient Occupancy Tax will similarly affect the exemptions provided by this act.

The bill outlines the procedures for tax collection, including due dates, reporting requirements, record-keeping, penalties for late payment, and the authority of the Department of Revenue to waive penalties. It specifies that the Department of Revenue will handle the administration and enforcement of the tax, following the same rules as the state lodging tax statutes. The bill also details the distribution of the tax proceeds, with a deduction for collection costs not exceeding five percent, and the remainder going to the Henry County General Fund for economic development and tourism promotion. The act will only become operative if approved by a majority vote in a referendum to be held in Henry County. The act is effective immediately upon passage and approval by the Governor or otherwise becoming law, with the Senate passing the act on May 31, 2023.