lodging tax

Airbnb is set to start collecting local lodging tax in Alabama’s largest city within the next month.

Al.com reports the Birmingham City Council approved an agreement yesterday allowing the short-term rental website to collect the city's 6.5 percent tax on rentals. Airbnb already collects a 4 percent state lodging tax for all Alabama rentals, including Birmingham.

Assistant City Attorney Julie Barnard says the tax will be collected automatically when a room is booked within city limits. Airbnb then will send the collected tax revenue to the city.

Three city council members who voted against new tax increase measures in Florence say they want to examine the city’s spending before considering any higher taxes.

A plan to increase the sales tax in Florence by one penny and to increase lodging taxes by 3 percent failed last week on a 3 to 3 vote. Florence Mayor Steve Holt tells the Florence Times-Daily he thought the plan, which would have increased city revenue by nearly $10 million a year, was going to pass.