Code of Alabama - Title 45: Local Laws - Section 45-39-221.07 - Distribution of county lodging tax

Section 45-39-221.07 - Distribution of county lodging tax.

The State Department of Revenue shall distribute the net proceeds of the county lodging tax as provided in this section:

(1) Prior to the organization of the tourism board hereunder, the net proceeds of the county lodging tax collected from persons and businesses operating in the corporate limits or planning jurisdiction of any municipality shall be distributed to that municipality; and the net proceeds of the county lodging tax collected from persons and businesses operating in the county, but not within the corporate limits or planning jurisdiction of any municipality, shall be distributed to the county. This subdivision shall become operative on June 1, 2014, but subject, however, to the effectuation of the succeeding provisions of this section.

(2)a. Subsequent to the organization of the tourism board hereunder, there shall be distributed directly to the tourism board 75 percent of the net proceeds of the county lodging tax that are collected from persons and businesses operating in either of the following:

1. The corporate limits or planning jurisdiction of any municipality.

2. The county, but not within the corporate limits or planning jurisdiction of any municipality.

b. All proceeds so distributed to the tourism board may be used by it for any purpose for which it is created.

(3) Subsequent to the organization of the tourism board, there shall be distributed directly to each municipality 25 percent of the net proceeds of the county lodging tax that are collected from persons and businesses operating in the corporate limits or the planning jurisdiction of that municipality. All proceeds so distributed to any municipality shall be either used by it for the promotion of tourism, recreation, conventions, sporting events, and other activities that advertise either or both the county and that municipality or that attract people to visit the county or that municipality, or appropriated and paid over by it to the tourism board.

(4) Subsequent to the organization of the tourism board hereunder, there shall be distributed directly to the county 25 percent of the net proceeds of the county lodging tax that are collected from persons and businesses operating in the county, but not within the corporate limits or planning jurisdiction of any municipality. All proceeds so distributed to the county shall be either used by it for the promotion of tourism, recreation, conventions, sporting events, and other activities that advertise either or both the county and any municipality or that attract people to visit the county or any municipality, or appropriated and paid over by it to the tourism board.

(5) Notwithstanding anything in subdivision (1) to the contrary, subdivisions (2), (3), and (4) shall become operative on the first day of the calendar month next succeeding the date on which the tourism board comes into existence, as determined pursuant to subsection (b) of Section 45-39-221.01.

(Act 2014-267, p. 859, §8.)

Last modified: May 3, 2021