Madison County, AL Hotels & Lodging: Transient Occupancy Tax (2026)

The tax applies to any person, firm, or corporation in the business of renting rooms, lodging, or accommodations to transients in a hotel, motel, inn, tourist camp, tourist cabin, or any other place that regularly furnishes lodging to transients for consideration, per Ala. Code § 45-45-246(a) (Act 2004-418). The levy is 1 percent of the room charge, including any charge for use of personal property and services furnished with the room. Rentals or services already taxed under the state sales tax provisions of Title 40, Chapter 23, Division 1, are exempted from this county tax to avoid double taxation.

The tax does not apply to a room, lodging, or accommodation supplied for 30 continuous days or more, the same 30-day threshold that separates a transient stay from a longer-term rental, so a unit rented month to month falls outside the tax once that mark is reached. Collection follows Ala. Code § 45-45-246(b): the Madison County Commission collects the levy in the same manner as the state lodgings tax under Title 40, Chapter 26, retaining a reasonable cost of collection. S. Space and Rocket Center Foundation for the Alabama Space Science Exhibit Commission, earmarked for acquiring capital equipment and financing capital improvements to the commission's buildings and property in Madison County.

The Legislature has amended the levy twice since its 2004 enactment, in Act 2012-442 and Act 2013-322, without changing the 1 percent rate or the funding recipient. Operators renting rooms or accommodations to transients in Madison County must remit the 1 percent tax to the county on their gross room receipts.