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Dec 19, 2024
What role do discretionary taxes like lodging and rental taxes play in Alabama’s overall tax system?
Discretionary taxes such as lodging taxes on hotel stays and rental taxes on vehicles and equipment play a supplementary role in Alabama’s tax system. They provide additional revenue streams for local governments and specific sectors, supporting tourism and rental industries. These taxes create extra obligations for businesses in these sectors, requiring them to collect and remit the appropriate amounts to maintain compliance.



