The Alabama Tourism Tax Protection Act of 2024 establishes new regulations regarding the transient occupancy tax, specifically defining key terms such as "accommodations intermediary," "accommodations provider," and "room charge." Under this act, accommodations intermediaries are required to collect and remit the tax imposed on lodging transactions, effective January 1, 2025. The act specifies that the tax will be based on the full retail price paid for accommodations, including any additional fees. It also allows for accommodations providers to receive tax remittances from intermediaries if there is a written agreement in place. Furthermore, accommodations intermediaries must clearly state the tax amount on customer invoices and submit annual reports to the Department of Revenue detailing accommodations rented for more than 14 days.

Certain entities are exempt from the provisions of this act, including professional property management companies that manage long-term leases, hotels that already collect and remit the tax, and destination marketing organizations funded by the tax. Additionally, the act designates professional property management companies as the "merchant of record" for transactions where they oversee accommodations. The Department of Revenue is tasked with creating rules for the act's implementation, which is set to take effect on October 1, 2024.