Overview: Are Short-Term Rentals Allowed in Enterprise, AL?

Yes—short‑term residential rentals (STRs) are explicitly allowed in Enterprise, Alabama, under city ordinance. On December 20, 2022, the Enterprise City Council approved Short‑Term Rental Ordinance 12‑06‑22‑C, which establishes performance standards, creates a business license classification, sets fees, requires lodging taxes, mandates inspections, and codifies other operational requirements. STRs are defined as the commercial use of a residential dwelling unit for lodging or sleeping where any guest rents or occupies, for a fee, for less than 90 consecutive calendar days. Commercial facilities already licensed under other business categories (hotels, motels, mobile home parks, RV parks) are excluded from this STR classification.

How to Start a Short-Term Rental Business in Enterprise, AL

Investors should treat STRs as a business from day one. The path to compliance is straightforward, but it requires systematic execution.

1. Confirm STR Eligibility and Zoning

• Confirm the subject property is a residential dwelling unit located within the City of Enterprise or its police jurisdiction.
• STRs must comply with all applicable City of Enterprise ordinances. Exclusions apply to lodging types already covered under separate business license categories (e.g., hotels/motels).

2. Classify the Business and Apply for Licensing

• Classify the STR under NAICS 721199 (All Other Traveler Accommodation).
• Complete and file the Short‑Term Rental Business License Application for 2025 (see Resources).
• Pay the required fees:
  • Annual STR permit fee: $20 per STR unit (in addition to the annual business license fee).
  • Lodging tax (see Tax Requirements below).

3. Designate a Local Contact and Provide Application Details

• Provide the name, address, and telephone number of a local contact person who will respond to complaints at the time of application.

4. Prepare for Safety and Health Inspection

• STRs are subject to inspection for health and safety requirements and must maintain compliance at all times.

5. Establish Operations Policies and Compliance Protocols

• Align operations with City ordinances, including:
  • Noise provisions (Ordinance 6‑18‑96).
  • Parking: occupant vehicles must park on site; no parking in the adjacent public right‑of‑way.
  • Trash and refuse: not left or stored in public view except in proper containers per City sanitation requirements.
  • Guest communication: it is the operator’s responsibility to notify occupants of City ordinance requirements.
  • Change management: notify the Revenue Department in writing within 15 days of any change in property ownership or management or any other material change in the license application.

6. Set Up Tax Collection and Remittance

• Collect applicable lodging taxes and remit monthly by the 20th to the City of Enterprise (in person or by mail) or via the ONE SPOT system.
• City lodging tax rate: 6% within city limits; 3% within the police jurisdiction.
• Penalties apply for late remittance: 10% of the tax amount due if received after the 20th. If the 20th falls on a weekend or holiday, taxes are due the next business day.

7. Platform Considerations (Airbnb, VRBO)

• If listing on third‑party platforms, verify whether they collect/remit taxes on your behalf and document your obligations. You remain responsible for compliance even if a platform assists with tax collection.

8. Maintain Ongoing Compliance

• Maintain safety and health standards and be inspection‑ready at all times.
• File monthly lodging tax returns on time and keep records for all fees and taxes collected and remitted.
• Notify the Revenue Department promptly of ownership/management changes and any material changes to application details.

Required Documents, Permits, Licenses, and Guidelines

• Short‑Term Rental Business License Application (2025): mandatory for classification under NAICS 721199.
• Business License Fee: annual license fee per Schedule K (contact the Revenue Department for current rates).
• STR Permit: $20 per unit, payable annually in advance.
• Local Contact Information: name, address, and phone number to respond to complaints (required on application).
• Lodging Tax Return: monthly filing using the City’s lodging tax return form.
• Ordinance Adherence: compliance with noise (6‑18‑96), parking, sanitation, and all other City ordinances applicable to STRs.
• Inspections: all licensed STRs are subject to health and safety inspections and must maintain compliance.

Specific Regulations: City, County, and State

City of Enterprise (Local STR Ordinance 12‑06‑22‑C)

• Definition: STR means the commercial use of a residential dwelling unit where any guest rents or occupies, for a fee, for less than 90 consecutive calendar days. Excludes commercial facilities already required to be licensed under other provisions (e.g., hotels/motels, mobile home/RV parks).
• Classification: NAICS 721199 (All Other Traveler Accommodation).
• Annual Fees: $20 per STR unit permit in addition to the annual business license fee; lodging tax and other applicable taxes apply.
• Local Contact: required at application; must respond to complaints.
• Inspections: mandatory and ongoing for health and safety compliance.
• Operational Standards:
  • Noise: adhere to City Ordinance 6‑18‑96.
  • Parking: occupant vehicles must park on site; no public right‑of‑way parking.
  • Trash: keep refuse out of public view except in proper collection containers per City ordinances.
  • Guest Obligations: operators must notify occupants of City ordinance requirements.
  • Change Management: written notice to the Revenue Department within 15 days of ownership/management changes or other material changes to the application.
• Lodging Tax:
  • Remit no later than the 20th of each month (in person, by mail, or via ONE SPOT).
  • City lodging tax: 6% within city limits; 3% within the police jurisdiction.
  • Penalty: 10% late fee if remitted after the 20th. If the 20th falls on a weekend/holiday, taxes are due the next business day.

Coffee County

• No county‑specific STR ordinance details were provided in the source content. County lodging taxes may apply in addition to City taxes; verify current county rates directly with County revenue/tax authorities.

State of Alabama

• Statewide Framework: Alabama does not have a single, statewide STR law. STR regulation is primarily local (city/county).
• State Lodging (Sales/Use) Tax: applies to short‑term rentals with occupancy under 180 consecutive days. Hosts should register with the Alabama Department of Revenue and collect/remit applicable taxes. Filing frequency (monthly, quarterly, annually) depends on prior year tax liability.
• City of Enterprise participates in the ONE SPOT system for remitting local sales, use, and rental (lodging) taxes.

Contact Information: Local Authority in Charge of STRs

City of Enterprise – Revenue and Business Licenses

• Address: 501 S Main Street, Enterprise, AL 36330
• Phone: (334) 347‑1211
• Mailing Address for Lodging Tax Returns: City of Enterprise, Revenue Department (mail or in‑person per remittance instructions)
• Lodging Tax Email (for ONE SPOT inquiries): ONESPOT@revenue.alabama.gov
• Lodging Tax Filing Options: in person, by mail, or via the ONE SPOT system

Notes:

• Direct email contacts for the City’s Revenue Department were not provided beyond the ONESPOT address.
• For specific business license fees (Schedule K) and inspection scheduling, call (334) 347‑1211.

Resources: Links to Source Pages and Key Forms

• City STR page and requirements: enterpriseal.gov/services/revenue_and_business_licenses/short_term_rentals.php
• Short‑Term Rental Business License Application (2025): enterpriseal.gov/services/revenue_and_business_licenses/Revenue%20%26%20Business%20Licenses/Short-Term%20Rental%20Business%20License%202025.pdf
• Short‑Term Rental Ordinance 12‑06‑22‑C: enterpriseal.gov/services/revenue_and_business_licenses/Revenue%20%26%20Business%20Licenses/Ordinance%2012-06-22-C%20%28Short-Term%20Rentals%29.pdf
• Lodging Tax Return (City of Enterprise): enterpriseal.gov/services/revenue_and_business_licenses/Revenue%20%26%20Business%20Licenses/LODGING%20TAX%20RETURN.pdf
• Alabama Department of Revenue – ONE SPOT system: www.revenue.alabama.gov/sales-use/one-spot/
• Airbnb lodging tax guidance (Alabama): www.airbnb.com/help/article/2293
• VRBO lodging tax guidance (Alabama): help.vrbo.com/articles/What-Stay-Taxes-Lodging-Taxes-does-HomeAway-collect-and-remit

Practical Compliance Checklist for Enterprise STR Investors

• Confirm zoning and property eligibility as a residential STR under City ordinance.
• Obtain the Short‑Term Rental Business License and pay the annual permit fee ($20/unit).
• Designate and provide a local contact person who will respond to complaints.
• Prepare for and pass health/safety inspections; maintain standards year‑round.
• Implement operations policies aligned with City ordinances:
  • Noise control (Ordinance 6‑18‑96).
  • On‑site parking only; no public right‑of‑way parking.
  • Trash sanitation practices per City requirements.
• Set up monthly lodging tax collection and remittance:
  • 6% within city limits; 3% within the police jurisdiction.
  • Remit by the 20th (or the next business day if the 20th is a weekend/holiday) via mail, in person, or ONE SPOT.
  • File monthly lodging tax returns and retain records.
• If listing on Airbnb/VRBO, verify whether platform‑level tax collection applies and document your responsibilities.
• Notify the Revenue Department within 15 days of any ownership/management changes or material changes to application information.
• Maintain a compliance calendar (inspections, tax remittance, license renewals) and internal controls for guest communications and ordinance adherence.

This guide reflects the City of Enterprise’s current STR ordinance and the statewide lodging tax framework. For fee schedules (Schedule K), inspection scheduling, or county‑specific lodging taxes, contact the City Revenue Department directly.