LicensedRental

Limestone County, Alabama

Athens, AL vacation rental requirements

Athens requires short-term rentals (30 days or less, rented to one party as a whole unit) to pay a city business license and lodging tax. Its October 2024 ordinance paused new rentals for three months and had existing ones register with the Planning Department. Lodgings tax is 14% plus $2 a night.

Checked against official sources November 5, 2026

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City rules
Ordinance 2024-2348
Ch. 18, Art. X: registration of existing rentals and a 3-month pause on new ones.Source
Business license
Required
Short-term rentals use their own NAICS code, not the residential rental schedule (§18-324).Source
Lodgings tax
14% + $2 a night
9% city + $2 room fee (collected by Avenu) + 5% state.Source

The 2024 article covers registration and a temporary moratorium only. Ask the city whether permanent permit rules have since been adopted.

Airbnb’s Alabama tax article lists the state tax and the local taxes the state administers. Taxes filed with a city, a county, or Avenu Insights may not be collected by the platform, so ask what it collects and file the rest yourself.

Your licensing checklist

In order: the state, the county, then the town.

State of Alabama

  1. 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

    My Alabama Taxes →

  2. 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

  3. 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

  4. 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

  5. Then your county and city

    Local business licenses, rental permits, and zoning rules are where Alabama towns differ most. Pick your area.

Limestone County, Alabama

  1. Register for the state lodgings tax

    File the 5% state tax through My Alabama Taxes.Source

  2. Then your city

    If your rental is inside Huntsville, Madison, or Decatur city limits, use that city’s page. Pick your area.

City of Athens

  1. Register with the Planning Department

    Report the owner, any manager, a 24-hour local contact, the address, and an affidavit that no lodging or business license tax is overdue.Source

  2. Get a city business license

    Ask the city which license classification applies to short-term rentals.Source

  3. Register for lodgings tax

    Total lodgings tax here is 14% plus $2 a night. The city’s 9% and $2 room fee are filed with Avenu Insights; the state 5% goes through My Alabama Taxes. Airbnb collects the state 5% and any state-administered local tax on its bookings. Ask your platform whether it also collects the other local taxes, and file anything it doesn’t (and all direct bookings) by the 20th of each month.Source

Sources

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.