Alabama levies a state transient occupancy (lodgings) tax of 5% in Madison County, which is part of the Mountain Lakes region, on stays under 180 continuous days. Madison also has a city lodging tax (Code Ch. 10, Art. VIII), and STR operators pay a business-license tax under the city code.
State lodgings tax under Ala. Code 40-26-1 applies to renting accommodations to transients; the Alabama Department of Revenue sets the rate at 5% in the 16 Mountain Lakes counties, which include Madison. Stays of 180 continuous days or more are exempt. The City of Madison separately levies a municipal lodging tax under Chapter 10, Article VIII of its Code of Ordinances (the ordinance defines these as 'Lodging Taxes'). Proposed Ordinance 2026-201 also imposes a $350 nonrefundable permit application fee and requires a business license under the Madison City Code. Confirm current city and county tax rates with the Revenue Department before hosting.
The proposed ordinance requires the property to have no outstanding taxes; unpaid lodging taxes or license taxes can block permit issuance and lead to enforcement by the Revenue Department.
Other ordinances people look up for this city. Green dot = verified primary-source excerpt.
Madison, AL
Madison has no ordinance prohibiting backyard composting, and no permit is required. Compost simply cannot become a nuisance: property-maintenance rules requ...
Madison, AL
Madison's Zoning Ordinance prohibits synthetic or artificial material imitating turf, trees, shrubs, or other plants from being used in lieu of the plant mat...
Madison, AL
Madison does not require homeowners to use native plants. For development sites, the Zoning Ordinance requires living trees, shrubs, or ground cover approved...
Madison, AL
Madison has no ordinance restricting residential rain barrels or rainwater harvesting. The Zoning Ordinance actually encourages low-impact stormwater practic...
Madison, AL
The City of Madison does not impose a mandatory outdoor-watering ordinance. Water service is provided by Madison Utilities, whose conservation status is norm...
Madison, AL
Overgrown grass or weeds that harbor pests, create a fire hazard, spread seeds, or are unsightly may be declared a public nuisance in Madison. Separately, al...
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