Tuscaloosa (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.

Find out if you’re in a city or police jurisdiction

Tuscaloosa and Northport tax (and Tuscaloosa licenses) short-term rentals in their police jurisdictions too, not only inside city limits. Ask the city which applies at your address.Source

Then your city

Pick your area.

Check your zone and day limit

The tourist overlay runs roughly south of the Black Warrior River between McFarland Boulevard East and 29th Avenue, around campus and downtown. Inside it (outside historic districts) any home can rent up to 45 days a year by right. Outside it, only condos and apartments get 45 days by right. Houses outside the overlay, anything in a historic district, and more than 45 days all need a special exception.Source

Apply for a special exception if you need one

File the ZBA petition for short-term rental ($400) with the Planning Division. The board weighs whether the home is the owner’s primary or accessory use, past complaints, and how many rentals are nearby. A new special exception allows 30 days the first year and 45 after unless the board sets another number.Source

Tuscaloosa STR forms →

Get the business license

Send the Revenue Division the business license application, a home inspection report by a licensed home inspector (houses) or a city fire or building inspection (condos, B&Bs), proof of $1 million liability insurance naming the city, and, for condos, a letter from the HOA or property manager. A manager who isn’t the owner needs a designation of agent and an Alabama real estate license.Source

Register for lodging tax

Total lodging tax is 15% in the city (11% city, filed with the city’s Revenue Division by the 20th, and 4% state through My Alabama Taxes). If a platform collects for you, the city still wants a monthly return with the platform’s transaction history.Source

Renew every year

Renew before the license expires with the yearly audit form showing nights rented; a home inspection report less than 24 months old must be on file. Licenses issued before May 21, 2019 keep their old rules only if renewed on time.Source