Henry County; county lodging tax further provided for

Henry County can tax temporary lodging

Beginning October 1, 2026, Henry County can levy a lodging tax of up to 4%, on top of other taxes. It covers businesses offering paid temporary stays, including hotels, motels, inns, condominiums, houses, and recreational vehicle parks. Covered charges include lodging, rental or personal property, and services furnished in the room. The law does not set the actual county rate. Stays of 30 continuous days or more and housing mainly intended as a principal or permanent residence remain exempt. Charges covered by the state sales tax law are also excluded. Other state lodging-tax exemptions apply, and future changes to those exemptions also apply here. Lodging businesses must report the prior month's taxable gross proceeds and pay by the 20th of each month. Reports and payments go to the Alabama Department of Revenue. Businesses can delay reporting credit sales until payment is collected, then report and pay tax on those collections. They must keep records for two years and allow state officials or an authorized county agent to inspect them. Late payments carry a 10% penalty plus interest at the state lodging-tax rate; the department can waive penalties for good reason. State lodging-tax rules govern administration and enforcement unless they conflict with this law, and the county can hire an agent. The department deducts its contracted collection fee, capped at 5% of total collections, and sends the rest to the county. Net revenue goes into Henry County's General Fund and can support economic development and tourism.