HB 135 Alabama House · 2025 Regular Session

Dale County, lodging tax, county commission authority to increase levy, distribution for economic and tourism development, Sec. 45-23-243 amended

HB 135 would allow Dale County to increase its existing 4% lodging tax rate on hotels, motels, and similar establishments. The tax applies to transient guests staying in rooms or accommodations, with the collected funds going to a dedicated county fund. This fund must be used exclusively for economic or tourism development projects, such as infrastructure improvements or marketing campaigns. The bill specifically affects businesses in Dale County that charge for lodging, with no impact on other Alabama counties.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Feb 2025

House Passage

Feb 2025

Senate Passage

Mar 2025

Signed into Law

Mar 2025

Introduced Feb 4, 2025 Signed Mar 19, 2025

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What changed between versions

Introduced → Enrolled · 6 edits · Mar 19, 2025

MODERATE

HB 135 was enrolled as an enacted law after passing both legislative chambers. The bill authorizes Dale County to levy a lodging tax on transient accommodations and directs the proceeds to fund economic and tourism development projects. The effective date for the tax is set for June 1, 2025.

Scope change

The bill applies specifically to Dale County, Alabama, and targets businesses renting rooms or lodging to transient guests in hotels, motels, inns, and similar establishments.

DEFINITION

Clarified that the tax applies to charges for rooms, lodgings, or accommodations including personal property and services furnished in the room

EXEMPTIONS

Added exemption for recreational vehicles and campgrounds from the lodging tax

Maintained exemption for rentals or services already taxed under Article 1, Chapter 23, Title 40

FISCAL

Establishes that tax proceeds must be kept in a separate fund and used only for specific economic or tourism development projects or incentive programs

TIMELINE

Sets the effective date of the tax at June 1, 2025

TECHNICAL

Includes certification signatures from House and Senate officers confirming passage on 13-Feb-25 and 04-Mar-25 respectively

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 4, 2025

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 230

upper

Feb 20, 2025

Upper · Passed

Reported Out of Committee Second House

upper

Feb 13, 2025

Upper · Passed

Pending Committee Action in Second House (Local Legislation )

upper

Feb 13, 2025

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 88

lower

Feb 11, 2025

Lower · Passed

Reported Out of Committee House of Origin

lower

Feb 4, 2025

Lower · Passed

Pending Committee Action in House of Origin (Local Legislation)

lower

1 primary · 0 co-sponsors