This bill proposes the implementation of a lodging tax in Winston County, Alabama, which will be levied at a rate of 8 percent on the charges for rooms, lodgings, or accommodations provided to transients in various establishments such as hotels and motels. The bill specifies that certain rentals and services already taxed under existing law will be exempt from this new tax. Additionally, nonprofit organizations recognized as tax-exempt under federal law will also be exempt. The tax will be collected in a manner similar to the state lodging tax and will create a lien on the property of those required to pay or collect the tax.

The proceeds from the lodging tax will be allocated as follows: 55 percent for road and bridge improvements (with specific distributions to different districts), 20 percent to the sheriff for law enforcement, 19 percent to volunteer fire departments with physical stations in the county, 1 percent to those without physical stations, and 5 percent to the Winston County General Fund. The act will only take effect if approved by a majority of voters in a referendum, which will be held in conjunction with the next local or state election. If the majority votes in favor, the act will become effective immediately; if not, it will be repealed. The act is set to become effective on October 1, 2025, if approved.