Orange Beach council asks Alabama attorney general to clarify Tourism Tax Protection Act

Orange Beach's City Council voted March 3 to request an opinion from the Alabama attorney general to clarify which entities are responsible for collecting and remitting lodging-related taxes under the Alabama Tourism Tax Protection Act of 2024.

Councilmember voice S9 (introduced as Jamie) told the council the 2024 state law contains language that leaves local governments uncertain about the responsibilities of intermediaries who facilitate lodging bookings. "The Tourism Tax Protection Act... has some language that is ambiguous at best regarding intermediaries and facilitating lodging rentals, collection of tax, and remitting of tax," Jamie said.

Councilmember S8 moved to add a resolution to the agenda asking for an attorney general opinion; the motion was seconded and adopted by voice vote. Council later took up and adopted the formal resolution authorizing the mayor to make the request.

Why it matters: council members said the question affects the city's ability to identify which companies should be assessed for unpaid lodging taxes and how the city enforces compliance. The resolution directs city officials to seek authoritative state guidance rather than rely on local interpretation of the statute.

What happens next: staff indicated the city will prepare the formal request and send it to the attorney general's office. The resolution does not change local tax code; it asks the state for a legal interpretation that council members said they need before taking enforcement actions against intermediaries or third-party booking services.