Code of Alabama - Title 45: Local Laws - Section 45-37-245 - Levy of tax for promotion of Birmingham as convention and visitors’ destination

Section 45-37-245 - Levy of tax for promotion of Birmingham as convention and visitors’ destination.

(a) This section relates to Jefferson County.

(b) The taxes levied by this section shall become effective, or go into effect, on June 1, 1979.

(c)(1) Commencing on June 1, 1979, in addition to all other taxes imposed by law, there is hereby levied and shall be collected by the director of revenue as herein provided a privilege or license tax in the amount hereinafter prescribed against every person engaging in the county in the business of renting or furnishing any room or rooms, lodging, or accommodations, to any transient in any hotel, motel, inn, tourist court, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration. The director of revenue shall deduct and pay to the treasury of the county one percent of the total amount of the taxes, to compensate the county for the expenses incurred by it in collecting the taxes and in administering this section. Following that deduction, the director of revenue shall pay the remainder of the taxes to the Greater Birmingham Convention and Visitors Bureau of the county created under Part 2, commencing with Section 45-37-91, of Article 9. The amount of the tax shall be equal to one percent of the charge for such rooms, lodgings, or accommodations, including the charge for use of rental of personal property and services furnished in such room or rooms.

(2) The amount so collected shall be allocated to the Greater Birmingham Convention and Visitors Bureau established by Act 794, 1969 Regular Session (Acts 1969, p. 1425), and this amount shall be used for the promotion of Birmingham as a convention and visitors' destination.

(d)(1) There are exempted from the provisions of the tax levied by this section and from the computation of the amount of the tax levied or payable hereunder the following: Charges for property sold or services furnished which are required to be included in the tax levied by the State Sales Tax Act; boarding houses, tourist homes, and similar establishments regularly offering less than five rooms for rental to transients; charges for the rental of rooms, lodgings, or accommodations furnished by any hospital, nursing home, convalescent home, or by any charitable or eleemosynary institution; charges for the rental of rooms, lodgings, or accommodations to a person for a period of 30 continuous days or more. The exemption hereby provided shall apply to any property sold or services furnished which are required to be included in any sales tax now or hereafter levied by the State of Alabama.

(2) The taxes levied by this section, except as otherwise provided herein, shall be due and payable on or before the 20th day of the month next succeeding the month in which the tax accrues. On or before the 20th day of each month after the effective date of the taxes every person on whom the tax is levied by this section shall render to the director of revenue on a form prescribed by him or her, a true and correct statement showing the gross proceeds of the business subject to the tax for the then preceding month, together with such other information as the director of revenue may demand and require; and at the time of making such monthly report the taxpayer shall compute and pay to the director of revenue the amount of taxes shown to be due; provided, however, that any person subject to the tax who conducts any business on a credit basis may defer reporting and paying the tax until after the person has received payment for the items, articles, or accommodations furnished; and in the event he or she so defers reporting and paying any such taxes he or she shall thereafter include in each monthly report all credit collections made during the then preceding month and shall pay the amount of taxes computed thereon at the time of filing such report.

(3) It shall be the duty of every person engaged or continuing in any business subject to the taxes levied by this section to keep and preserve suitable records of the gross proceeds of such business and such other books or accounts as may be necessary to determine the amount of tax for which he or she is liable under this section. Such records shall be kept and preserved for a period of five years and shall be open for examination at any time by the director of revenue or by any duly authorized agent, deputy, or employees of the director.

(4) Any person who fails to pay the tax levied by this section within the time required by this section shall pay in addition to the tax a penalty of 10 percent of the amount of tax due, together with interest thereon at the rate of one-half of one percent per month or fraction thereof the date on which the tax became due and payable, such penalty and interest to be assessed and collected as a part of the tax; provided, however, that the director of revenue may, if good and sufficient reason be shown, waive or remit the penalty or any portion thereof.

(e) The failure of any person to pay any tax levied by this section within the time specified for the payment of the same by the section shall constitute a misdemeanor; and the violation of any of the provisions of this section by any person shall constitute a misdemeanor. Any person violating any provisions of this section shall upon conviction be punished by fine of not more than five hundred dollars ($500) and may also be sentenced to hard labor for the county for not exceeding six months, either or both, unless a different punishment is prescribed herein.

(f) None of the provisions of this section shall be applied in such manner as to violate the commerce clause of the Constitution of Alabama. Should any provision of this section be held invalid, the invalidity thereof shall not affect the remaining provisions of the section.

(g) There are hereby repealed all existing ordinances of all municipalities within the county imposing, or levying any license tax on the hotel, motel, or tourist court business based on the gross receipts of such business or on a percentage of the charges made for rooms, lodgings, or accommodations. Such repeal of municipal ordinances shall not impair the power of the governing body of any municipality to reenact any ordinance hereby repealed, or to enact any new or different ordinance imposing, or levying, a license tax on the hotel, motel, or tourist court business based on the gross receipts of such business or on a percentage of the total charges made for rooms, lodgings, or accommodations.

(Act 79-126, p. 231, §§1-5, 7.)

Last modified: May 3, 2021