Jefferson County, Alabama
Vestavia Hills, AL vacation rental requirements
Vestavia Hills bans renting any home, duplex, or apartment in a residential zone for less than 90 days, and bans advertising such rentals (Ordinance 3204, December 2023). The city says it has issued no business licenses for home sharing; the only path is a conditional use approval ($100, two public hearings). Lodgings tax is 17%.
Checked against official sources November 5, 2026Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.
Your licensing checklist
In order: the state, the county, then the town.
State of Alabama
Register for the lodgings tax
Create an account at My Alabama Taxes (MAT) and register for state lodgings tax, plus any local lodgings taxes the state administers for your county and city. Cities that collect their own tax need a separate account with the city.Source
File by the 20th
Returns are due by the 20th of the following month. Small filers can ask (before February 20) to file quarterly, twice a year, or yearly. Paying on time earns a small discount (5% of the first $100 of tax, 2% after).Source
Know what the platform collects
Under Act 2024-334, Airbnb, VRBO, and other booking platforms collect the state and local lodgings taxes on their bookings unless your contract says you remit. You still owe tax on direct bookings, and the law adds a yearly report of every unit rented more than 14 days.Source
Keep filing once you register
If every booking goes through a platform that collects all your state and local lodgings taxes, you may not need your own account. But if you take direct bookings, or the platform doesn’t collect one of your local taxes (often the ones filed with a city, a county, or Avenu), register and file it yourself. Once registered, file every period, even a $0 return, and report platform-collected sales as a deduction. Some county offices ask owners to keep their own account and file monthly even when the platform pays, so ask yours.Source
Then your county and city
Local business licenses, rental permits, and zoning rules are where Alabama towns differ most. Pick your area.
Jefferson County, Alabama
Register for the county lodgings tax
File the county’s 7% monthly with the Jefferson County Department of Revenue (205-325-5171), on top of the 4% state tax through My Alabama Taxes.Source
Then your city
Check your city first: several suburbs don’t allow stays under 30 or 90 days in homes.
City of Vestavia Hills
Rent for 90 days or longer
In residential zones, stays under 90 consecutive days are illegal.Source
Or ask for a conditional use approval
Check your covenants first (many subdivisions allow only single-family use). File the Conditional Use Approval application, a letter describing the business, and $100 with the City Clerk. If approved, you’ll need business licenses, lodging tax accounts, and lodging upgrades, including sprinklers when the whole home is rented.Source
Register for lodgings tax
Total lodgings tax here is 17%. The city’s 6% is filed with Avenu Insights. The county’s 7% is filed with the Jefferson County Department of Revenue. Airbnb collects the state tax and the local taxes the state administers. For county or city taxes filed with the county, the city, or Avenu, ask your platform whether it remits them; if not, file them yourself by the 20th of each month.Source
Sources
- State lodgings tax · Alabama Department of Revenue
- Lodgings tax FAQs · Alabama Department of Revenue
- Alabama Tourism Tax Protection Act (Act 2024-334) · Alabama Department of Revenue
- Alabama vacation rental tax guide · Avalara MyLodgeTax
- Jefferson County lodgings tax return · Jefferson County Department of Revenue
- Code section · City of Vestavia Hills (Municode)
- Home sharing · City of Vestavia Hills
- Local lodgings tax rates report (November 2026) · Alabama Department of Revenue
- Ordinance 3204, short-term rentals prohibited in dwellings (December 11, 2023) · City of Vestavia Hills
A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.