Winston County passes local legislation for short-term rental tax distribution

A significant legislative move took place during the Alabama House Local Legislation Committee meeting on April 23, 2025, as the committee approved a bill concerning short-term rentals in Winston County. This bill, known as the Posey Amendment, aims to regulate the growing number of short-term rental properties, which currently number around 98 in the area, particularly around Smith Lake.

The bill outlines a unique tax structure for these rentals, allocating funds in a way that directly benefits local services. Specifically, 20% of the tax revenue will support volunteer fire departments, another 20% will go to the sheriff's office, and 5% will be directed to the county commission. The remaining 55% will be divided further, with 75% of that amount designated for local services in the district where most rentals are located.

Representative Wadsworth, who presented the bill, emphasized the importance of local input in the legislative process, noting that the Posey Amendment requires a vote from the residents of Winston County to enact any changes. This provision ensures that the community has a say in how local legislation affects them, a point that resonated with committee members.

The committee's approval marks a rare success for local legislation in Winston County, with this being only the third local bill passed in the last decade. The meeting also highlighted ongoing challenges faced by local health services, as the health department in Winston County has struggled due to the lack of local legislation allowing them to charge for services.

As the bill moves forward, it represents a critical step in addressing the needs of Winston County's residents while ensuring that local governance remains in the hands of the community. The anticipated outcomes include improved funding for essential services and a more structured approach to managing the influx of short-term rentals in the area.