The state of Alabama has enacted legislation mandating that accommodations intermediaries collect state and local transient occupancy taxes starting 1 January, 2025.
According to the bill, accommodation intermediaries must collect taxes on the “room charge”. A room charge includes the full retail price paid by the guest for an accommodation, including any accommodation fees and additional charges.
When an intermediary facilitates the transaction on behalf of an accommodation provider, the collected taxes may be remitted to the provider, given that there is a written agreement specifying the responsible party for remitting these kinds of taxes.
