Montgomery, AL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 11% of gross lodging receipts
- Police jurisdiction rate
- Half rate outside city limits
- Filing deadline
- Monthly by the 20th (Sec. 16-234)
- Revenue use
- Tourism/economic development and stadium/civic-center financing
- Record retention
- 2 years, open to city inspection
Summary
Montgomery levies an 11 percent transient occupancy tax on gross receipts from hotels, motels, tourist courts and similar lodging renting to guests for less than 180 consecutive days. The Finance Department collects the tax monthly, splits revenue between tourism promotion and civic-center financing, and applies half the rate in the police jurisdiction.
(a)There is hereby imposed, levied and assessed against every person, firm, association or corporation engaged in the business of renting or furnishing any room or rooms, lodgings or accommodations to transients in any hotels, motels, tourist courts, tourist cabins, lodginghouses, roominghouses or any other place in which rooms, lodgings or accommodations are regular furnished to transients for consideration for periods of less than 180 consecutive days a license tax equal to 11 percent of the gross income received by each such person, firm, association or corporation from the renting of such rooms, lodgings, or accommodations within the corporate limits of the city.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 27).
Full Breakdown
Sec. 16-231(a) imposes an 11 percent license tax on the gross income of any person or business renting rooms, lodgings or accommodations to transients in hotels, motels, tourist courts, tourist cabins, lodginghouses, roominghouses or "any other place" furnishing lodging to transients for consideration for stays of less than 180 consecutive days, measured within the corporate limits. Sec. 16-231(b) cuts that rate in half for the same lodging businesses operating only within the city's police jurisdiction outside the corporate limits. Sec. 5 percentage points are earmarked for financing a minor league baseball stadium, a civic-center expansion or an adjacent hotel, and Cramton Bowl renovations, subject to city council approval.
Under Sec. 16-234, the tax is due monthly, with every operator filing a statement of the prior month's gross receipts on or before the 20th of the following month and remitting the tax due at the same time. Sec. 16-235 requires operators to keep receipt records for two years, open to city inspection at any time, and Sec. 16-236 lets, but does not require, operators pass the tax through to guests on the room bill.
Violations & Fines
Sec. 16-238 makes it unlawful to operate a taxable lodging business without paying the license tax required by Article V, and separately unlawful to fail to file the monthly statement or to file a false one; violations are prosecuted under the Code's general penalty, Sec. 1-6, which allows a fine up to $500.00, up to six months in jail, or hard labor, with each day of noncompliance a separate offense.
Frequently Asked Questions
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Sources & Official References
Other rules in Montgomery
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