Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-5 - USE TAX LAW; CONTRACTORS GROSS RECEIPTS TAX; LODGINGS TAX; RENTAL TAX; UTILITY TAXES; MISCELLANEOUS RULES › Section 810-6-5-.13 - Persons, Firms, And Corporations Subject To Lodgings Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The term
			 "lodgings tax" as used in this rule shall mean the state tax levied in Section
			 40-26-1(a),
Code of Ala. 1975
, and county and municipal taxes
			 which parallel the state tax levy.
(2) The definition of the term "person" as
			 used in this rule shall be the same as the definition contained in Section
			 40-2A-3(13),
Code of Ala. 1975
.
(3) The term "transient" as used in this rule
			 means any person to whom rooms, lodgings, or other accommodations are provided
			 for a period of less than 180 continuous days.
(4) Except as noted, lodgings tax applies to
			 all charges made for the use of rooms, lodgings, or other accommodations,
			 including charges for personal property used or services furnished in the
			 rooms, lodgings, or other accommodations, by every person who is engaged in the
			 business of renting rooms or lodgings or furnishing accommodations to
			 transients. The tax applies regardless of whether the person occupying such
			 rooms or lodgings or receiving such accommodations is a resident or nonresident
			 of the area in which such rooms or lodgings are located or in which such
			 accommodations are furnished.
(5)
			 The lodgings tax shall be collected by all persons engaged in the business of
			 renting or furnishing rooms or other accommodations in any hotel, motel,
			 rooming house, apartment house, lodge, inn, tourist cabin, tourist court,
			 tourist home, camp, trailer court, marina, convention center, or any other
			 place where rooms, apartments, cabins, sleeping accommodations, mobile home
			 accommodations, recreational trailer parking accommodations, boat docking
			 accommodations, or other accommodations are made available to travelers,
			 tourists, or other transients.
(6)
			 Where a separate charge is made for personal property furnished in rooms or
			 other lodgings in addition to the charge for the use of the rooms or other
			 lodgings, such separate and additional charge is subject to the lodgings
			 tax.
(7) Where a separate charge is
			 made for maid, porter or janitorial services furnished in rooms or other
			 lodgings in addition to the charge for the use of the rooms or lodgings, such
			 separate and additional charge is subject to the lodgings tax. Charges for
			 laundry, dry cleaning, and telephone services are not subject to the
			 tax.
(8) Charges made for the
			 rental of ball rooms, dining rooms, club rooms, sample rooms, conference rooms,
			 wedding chapels, or other meeting spaces that are neither intended nor suitable
			 and not used for overnight sleeping purposes are not subject to the tax levied
			 by Section
			 40-26-1,
Code of Ala. 1975
, if the charges for the rental are
			 separately stated by the facility and are used exclusively as a meeting room
			 for any conference, seminar, club meeting, private party or similar type
			 activity. This exclusion, as provided for in this rule, applies solely to the
			 transient occupancy tax levied under Chapter 26 of Title 40,
Code
			 of Ala. 1975
, and does not apply to any other taxes, licenses, or
			 fees. However, the separately stated rental charges made exclusively for such
			 meeting rooms by the facility are also excluded from the tax levied by Chapter
			 23 of Title 40
(9) The state of
			 Alabama, counties and incorporated municipalities of the state, and educational
			 institutions and agencies of the state and the counties or incorporated
			 municipalities of the state are not exempt from lodgings tax. Accordingly,
			 charges for rooms, lodgings, or other accommodations furnished to these
			 entities are taxable whether billed directly to, and paid for directly by, the
			 entity or paid by employees of these entities with their own funds. (AGO,
			 Graddick, June 4, 1981) (Section
			 40-26-1)
(10) Other states, counties and
			 incorporated municipalities of other states, and educational institutions and
			 agencies of other states and counties and incorporated municipalities of other
			 states are not exempt from lodgings tax. Accordingly, charges for rooms,
			 lodgings, or other accommodations furnished to these entities are taxable
			 whether billed directly to, and paid for directly by, the entity or paid by
			 employees of these entities with their own funds. (Section
			 40-26-1)
(11) Exemptions from the lodgings
			 tax are as follows:
(a) Charges for rooms,
			 lodgings, or accommodations supplied for a period of 180 continuous days or
			 more in any one place are exempt from state, county, and municipal lodgings
			 tax. Prior to December 1, 2001, the tax did not apply to charges for rooms,
			 lodgings, or accommodations supplied for a period of 30 continuous days or more
			 in any one place.
(b) Effective
			 January 1, 2009, charges for rooms, lodgings or accommodations made in
			 connection with a state-certified production which meets the requirements of
			 Section
			 41-7A-45,
Code of Ala. 1975
, as amended, shall be exempt from
			 the state lodgings tax. When the qualified production company makes application
			 for and receives written certification of the incentive award from the Alabama
			 Film Office, the Department will issue the appropriate certificate of
			 exemption. The lodgings tax exemption provided in Section
			 41-7A-45 applies only to state lodgings tax. The qualified production company must pay
			 application local lodgings taxes. See Lodgings Tax Rule
			 810-16-1-.01 State Sales, Use, and Lodgings Tax Exemption for Qualified Production
			 Companies.
(c) Charges for rooms,
			 lodgings, or other accommodations furnished to the United States government,
			 its departments, or its agencies are exempt from state, county, and municipal
			 lodgings tax provided the charges are billed directly to the United States
			 government and paid for by the United States government with government funds.
			 The charges are exempt from lodgings tax when paid by credit card provided
			 charges to the card are billed directly to, and paid directly by, the U.S.
			 Government and are not billed to and paid by an employee who is reimbursed by
			 the U.S. government. Charges for rooms, lodgings, or other accommodations
			 furnished to federal employees in conjunction with their official duties are
			 taxable when the federal employee pays the charges with his or her own funds or
			 with a credit card and receives reimbursement from the United States
			 government.
(d) Federal credit
			 unions are exempt from state, county, and municipal lodgings tax. (12 U.S.C.A.
			 D1768) This exemption applies to charges for rooms, lodgings, or other
			 accommodations furnished to federal credit unions provided the charges are
			 billed directly to the federal credit union and paid for by the federal credit
			 union with the credit unions funds.
The charges are exempt from lodgings tax when paid by credit
				card provided charges to the card are billed directly to, and paid directly by,
				the federal credit union and are not billed to and paid by an employee who is
				reimbursed by the federal credit union. Charges for rooms, lodgings, or other
				accommodations furnished to federal credit union employees in conjunction with
				their official duties are taxable when the credit union employee pays the
				charges with his or her own funds or with a credit card and receives
				reimbursement from the federal credit union.
(e) Certain foreign diplomats and consular
			 officials are exempt from state, county, and municipal lodgings taxes pursuant
			 to treaties and other diplomatic agreements with the United States. (U.S.
			 Constitution, Article VI) See Sales, Use, and Lodgings Tax Rule
			 810-6-3-.24.01 entitled Foreign Diplomatic and Consular Officials.
(f) The proceeds from the sale or resale of
			 any vacation time-sharing lease plan are exempt from lodgings tax. (Section
			 34-27-65,
Code of Ala. 1975
)
(g) Charges for rooms, lodgings, or other
			 accommodations furnished to entities that are exempted from the payment of any
			 and all state, county, and municipal taxes by special act of the Legislature
			 including, but not limited to, those entities enumerated in Section
			 40-9-12 are exempt from lodgings tax provided the charges are billed directly to the
			 exempt entity and paid for by the exempt entity with the exempt entity's funds.
			 The charges are exempt from lodgings tax when paid by credit card provided
			 charges to the card are billed directly to, and paid directly by, the exempt
			 entity and are not billed to and paid by an employee who is reimbursed by the
			 exempt entity. Charges for rooms, lodgings, or other accommodations furnished
			 to employees of the exempt entity in conjunction with their official duties are
			 taxable when the employee pays the charges with his or her own funds or with a
			 credit card and receives reimbursement from the exempt entity.
(h) Charges for certain rooms, lodgings, or
			 accommodations supplied by camps, conference centers, or similar facilities are
			 exempt from lodgings tax. See Lodgings Tax Rule
			 810-6-5-.21 entitled Lodgings and Programs Provided for Children, Students, or Members or
			 Guests of Nonprofit Organizations by Camps, Conference Centers, and Similar
			 Facilities.