LicensedRental

Morgan County, Alabama

Decatur, AL vacation rental requirements

Decatur legalized short-term rentals (under 30 days) on April 1, 2026: up to 150 approvals a year, no more than three within 1,000 feet in residential zones, a fire and building inspection, a local contact within 50 miles who responds within an hour, and a city business license. Reported fees are $250 to apply and $250 on approval. Lodgings tax is 15% plus $2 a night.

Checked against official sources November 5, 2026

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City approval
150 a year, first come
Riverfront and commercial areas don’t count toward the cap, per news reports.Source
Spacing
Max 3 within 1,000 feet
In residential zones; the Board of Zoning Adjustment can grant variances.Source
Fees
$250 + $250 on approval
As reported; plus a business license.Source
Lodgings tax
15% + $2 a night
10% city + $2 room fee (city-administered) + 5% state. The city tax also applies in the police jurisdiction.Source

Fines of up to $500 a day for operating without approval began after a 90-day grace period (July 1, 2026). Three complaints in a year can cost the permit.

We couldn’t find the ordinance in the online code yet, so these facts come from news reports. Confirm fees and zoning with the Planning Department.

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.

Morgan County, Alabama

  1. Register for the state lodgings tax

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

  2. Then your city

    Pick your area.

City of Decatur

  1. Apply through the city’s online portal

    Decatur’s contractor, Deckard Technologies, runs the application. Submit proof of ownership and insurance, an off-street parking plan, and a local owner or agent within 50 miles, and complete the orientation course.Source

  2. Pass the inspection

    The fire marshal and building inspector inspect at the first application; later years use a yearly self-inspection.Source

  3. Get a city business license

    Get a business privilege license from the Revenue Department.Source

  4. Register for lodgings tax

    Total lodgings tax here is 15% plus $2 a night. The city’s 10% and $2 room fee are filed with the city; 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

House rules for guests

Parking
Off-street only
Overnight vehicles can’t exceed approved spaces; no on-street parking without a variance.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.