HB 204 Alabama House · 2026 Regular Session

Henry County; county lodging tax further provided for

HB 204 allows Henry County to impose a tax of up to 4% on short-term lodging rentals (such as hotels, motels, and vacation rentals) for transient guests staying less than 30 days. It exempts long-term rentals (30+ days), permanent housing, and items already subject to state sales tax. Businesses must report monthly tax collections to Alabama’s Department of Revenue, with proceeds deposited into the county’s General Fund for economic development and tourism promotion. The tax applies only to temporary stays, not permanent residences or sales tax-covered services.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Jan 2026

House Passage

Jan 2026

Senate Passage

Jan 2026

Signed into Law

Feb 2026

Introduced Jan 13, 2026 Signed Feb 3, 2026

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What changed between versions

Introduced → Enrolled · 5 edits · Feb 3, 2026

MODERATE

The bill was finalized and enrolled for signature, incorporating several substantive changes to the Henry County lodging tax. The text was cleaned up to remove redundant phrasing and formatting errors present in the draft version. Most importantly, the bill now explicitly states that penalty and interest rates will match those of the state lodging tax, clarifies that the Department of Revenue can waive penalties for good cause, and specifies that net tax proceeds must be used for economic development and tourism promotion.

Scope change

The scope of the bill remains focused on Henry County, but the enforcement mechanisms and fund usage were clarified to align with state standards and specific local goals.

ENFORCEMENT

Added a provision stating that penalties and interest for late payment will be assessed at the same rate as the state lodging tax.

Granted the Department of Revenue the authority to waive or remit penalties if good and sufficient reason is shown.

TECHNICAL

Removed redundant text and corrected grammatical errors (e.g., changing 'another other' to 'another') found in the introduced draft.

FISCAL

Explicitly directed that net tax proceeds must be used for economic development and tourism promotion.

TIMELINE

Confirmed the effective date of the act as October 1, 2026.

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

Jan 22, 2026

Upper · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 107

upper

Jan 21, 2026

Upper · Passed

Reported Out of Committee Second House

upper

Jan 20, 2026

Upper · Passed

Pending Committee Action in Second House (Local Legislation )

upper

Jan 20, 2026

Lower · Passed

Motion to Read a Third Time and Pass - Adopted Roll Call 35

lower

Jan 15, 2026

Lower · Passed

Reported Out of Committee House of Origin

lower

Jan 13, 2026

Lower · Passed

Pending Committee Action in House of Origin (Local Legislation)

lower

1 primary · 0 co-sponsors