Montgomery (city), AL vacation rental requirements

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 →

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.

Register for the county room fee

File the $2.25 per-room-night county lodgings fee with Montgomery County (its Sales Tax and Audit department posts the lodging tax form). Airbnb’s Alabama article doesn’t list it.Source

Then your city

The City of Montgomery has its own license and rules. Pick your area.

Check zoning, deeds, and HOA rules

The ordinance doesn’t override zoning, historic district rules, deed restrictions, or HOA rules; you must comply with all of them. Rental arbitrage (renting out a place you lease) isn’t allowed.Source

Get the inspection

Hire an Alabama-licensed home inspector (an architect or engineer for multifamily buildings) approved by the Chief Building Official. Fix anything the Building Compliance Report finds before the license is issued.Source

Apply for the Short-Term Rental Business License

Apply with License and Revenue for each property ($250 a year). Include your insurance declarations page, the Building Compliance Report, an evacuation map, a to-scale floor plan with every bedroom, a site plan showing guest parking, a 24-hour local phone number, a contact within 30 miles, and every owner’s name and phone. A manager who isn’t the owner needs a notarized power of attorney.Source

Montgomery License and Revenue →

Set up the house

Post a 10″ × 8″ evacuation map in each bedroom, mount a serviced fire extinguisher in the kitchen, any garage, and on each floor, put smoke and CO alarms in every bedroom and log monthly tests, and post an 8″ × 11″ placard with the 24-hour contact. Fence pools at least 4 feet with a locking gate.Source

Register for lodgings tax

Total lodgings tax here is 15% plus $2.25 a night (5.5% city in the police jurisdiction). The city’s 11% is filed with the city (Airbnb lists it as collected) and the $2.25 county fee with Montgomery County. Airbnb collects the state 4% 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

Renew every year

Renew with proof of insurance, the inspection report, a certification that nothing has changed, current contacts, and an annual report of bookings, revenue, and platforms. Report any change of owner or manager within 24 hours or the next business day.Source