Short-term rental rules · Oxford, Alabama
Short-term rentals in Oxford, explained properly.
Oxford, Alabama regulates short-term rentals in Article 14 of its zoning appendix (Ord. No. 2023-03, adopted February 28, 2023). A short-term rental is a rental to a transient of less than 30 consecutive calendar days. A request for designation is filed with the Building Department, sent to the Planning Commission and must be approved by the City Council. Each property then needs an annual permit ($150 application fee, expiring December 31) and the operator needs a City business license, after a Fire Department inspection. Rentals need a 24-hour local responsible party, $1,000,000 liability insurance, a license number in every listing and a safety equipment package. In R1 residential areas, no two units may be within 1,500 feet of each other. The City levies an 8% short-term rental lodging tax. Violations are a misdemeanor with a fine of $100 to $500. The zoning districts that allow the use were not shown in the text read for this page.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Conditional: allowed within city limits only for a property the City Council designates after Planning Commission review, and the dwelling must meet all zoning requirements; the zoning district list is not shown here[1]ClauseClauseClauseClauseConfirming |
| Is a City short-term rental permit and business license required? | Yes: an annual Short-Term Rental Permit for each property ($150 nonrefundable application fee, runs to December 31) and a City business license, one license per operator, with the license number shown in every listing[1]ClauseClauseClauseClauseClause |
| City short-term rental lodging tax | 8% of the charge for each room, lodging or accommodation, payable monthly by the 20th of the following month; a 10% penalty is added to late tax[1]ClauseClauseClause |
Watch this market
Want to know when Oxford's rules change?
We watch Oxford's official rule pages, council agendas and Alabama legislation. When a change affecting short-term rentals is proposed or passed, we email you what changed, when it takes effect, and a link to the source.
Alerts are free. Own in several cities? Pro will track every rule for your whole portfolio.
No spam. Unsubscribe anytime. See our privacy policy.
Detailed rules
The full picture, section by section
Operating rules
| Is City Council approval required? | Yes: each request for designation goes to the Planning Commission for a recommendation and must be approved by the City Council; permits are issued by the Building Department upon that approval[1]ClauseClause Sec. 14.03(b) says any request for Short-Term Rental designation filed with the Building Department must be approved by the City Council after being forwarded to the Planning Commission for consideration and recommendations. Sec. 14.04(a)(1) says the Building Department issues Short-Term Rental Permits upon approval of the City Council. Approval criteria beyond the permit, zoning and safety requirements listed in the article are not shown here. |
|---|---|
| Can a short-term rental permit be transferred? | No: a permit holder may not transfer the right to operate to another person or entity by lease, agreement or contract, and a permit is issued for one location and cannot be used at another[1]ClauseClause Sec. 14.04(a)(1) prohibits a permit holder from transferring the right to operate under a permit to any person or entity by lease, agreement, contract or any other agreement, and says a permit cannot be operated or have legal effect at any location other than the one for which it is issued. Permits expire on December 31 each year. |
| Is there a spacing requirement between short-term rentals? | In R1 residential areas, no two short-term rental units may be within 1,500 linear feet of each other; the spacing rule applies to R1 areas[1]Clause Sec. 14.05(g) sets the 1,500 linear feet rule for R1 residential areas. A spacing distance for other zoning districts, and any exception for rentals operating before the ordinance, is not shown here. The zoning district map and the rest of the zoning appendix were not read. |
| Shortest rental length | A short-term rental may not be rented for less than one night's stay; a short-term rental is a rental of less than 30 consecutive calendar days[1]ClauseClause Sec. 14.05(d) sets the one-night floor. Sec. 14.02(b) defines a Short-Term Rental as the rental of a Short-Term Rental Unit or any part of it to a transient for overnight occupancy for a period less than 30 consecutive calendar days. |
| Occupancy and parking | Occupancy is limited to the number of available parking spaces, with adequate parking for every two adults counting toward occupancy; parking must be on a driveway or within a parking area on the property[1]ClauseClauseClause Sec. 14.05(c). The permit application includes a survey of the property showing the number and location of parking spaces (Sec. 14.04(a)(4)d). |
| Weddings, concerts and large gatherings | Commercial activities such as large gatherings, concerts or weddings are not allowed[1]Clause Sec. 14.05(b). |
| Subdivision covenants and neighborhood rules | A dwelling in an area subject to a homeowner's association must comply with the association's covenants and any subdivision regulations[1]Clause Sec. 14.05(h). |
| Local responsible party available 24 hours | Post the name and phone number of a local responsible party in the unit, give it to the Building Department, and answer calls 24 hours a day, 7 days a week during each rental period[1]ClauseClause Sec. 14.03(d). The permit application also lists an emergency contact who can respond on premises to complaints at any time of day or night when a transient occupies the property (Sec. 14.04(a)(3)c). |
| Fire Department inspection | Every unit must be inspected by the Fire Department before a business license is issued, and is subject to later inspections at any time[1]ClauseClauseClause Sec. 14.03(g). Sec. 14.09 also requires smoke and carbon monoxide detectors, operable egress windows in sleeping areas, proper hand and guard rails, GFCI protection where the National Electrical Code requires it, fire extinguishers, a displayed 911 address and emergency egress lighting for any dwelling rented as a short-term rental and any separate guesthouse. |
| Liability insurance | Certificate of insurance showing at least $1,000,000 of liability and personal injury coverage, by homeowner's policy rider or commercial policy[1]ClauseClause Sec. 14.04(a)(4)e. A commercial policy must provide for 30 days' written notice to the City Clerk before it terminates or is cancelled before the end of the permit period. |
| Permit application contents | Application form with operator and emergency contact details and a sworn statement; attach ID, deed or right to possess, platform list, parking survey and insurance certificate[1]ClauseClauseClauseClause Sec. 14.04(a)(3) and (4). The sworn statement covers code-compliant smoke and carbon monoxide alarms, a posted emergency contact and fire-exit diagram, compliance with the property maintenance, building, electrical, mechanical and plumbing codes and the zoning ordinance, best efforts to notify adjacent properties, and no outstanding taxes or municipal code violations on the property. The Building Department or Planning Commission may require other information. |
| Rental records and audit | Each owner keeps records of the nights the premises is rented and submits to an audit before the business license is renewed[1]Clause Sec. 14.05(e). Sec. 14.08 separately requires a monthly statement of gross proceeds, and a transaction history from any third party that collects lodging tax. |
| Nuisance and garbage rules | Units must follow the City's Nuisance Ordinance (2015-05) and the City's garbage and trash regulations[1]ClauseClause Sec. 14.03(e) and (f). |
Penalties & enforcement
| Penalties for violations | Misdemeanor: on conviction, a fine of $100 to $500[1]ClauseClause Sec. 14.11 treats a violation of Article 14 as a misdemeanor punishable by a fine of not less than $100 and not more than $500. Sec. 14.01(a) adds that the article does not affect the City's right to impose other applicable fees, charges or penalties. |
|---|---|
| Notice, suspension and revocation | Written notice with a compliance due date; the Building Inspector may temporarily suspend the business license for a persistent violation, and the Council may revoke it after a public hearing on at least 7 days' notice[1]ClauseClause Sec. 14.10. The Building Department may extend the compliance date if substantial progress has been made. For persistent violations the Building Inspector may ask the Council to revoke the license; the Council holds a public hearing after at least seven days' notice to the licensee. |
State law that also applies
| Alabama state lodgings tax | 4% of the charge in most counties (5% in 16 north Alabama counties); stays of 180 continuous days or more are not taxed[2][3]ClauseClauseClauseClauseClauseClauseClause Section 40-26-1 of the Code of Alabama levies a privilege or license tax on every person in the business of renting or furnishing rooms, lodging or accommodations to transients in any hotel, motel, inn, tourist camp, tourist cabin or any other place in which rooms, lodgings or accommodations are regularly furnished to transients for a consideration. The rate is 5% of the charge in the 16 counties of the Alabama mountain lakes area (Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan and Winston) and 4% in every other county, and the charge includes any charge for personal property and services furnished in the room. The tax does not apply to rooms, lodgings or accommodations supplied for 180 continuous days or more. The Alabama Department of Revenue says lodgings tax is collected through an account at My Alabama Taxes, and that counties and cities may add their own lodgings taxes of between 1% and 13%, some collected by the Department, some by third-party administrators and some by the local government itself. Local lodgings taxes are shown on each place's page. |
|---|---|
| Do booking platforms collect the tax? | Yes, since January 1, 2025: platforms that facilitate a booking and charge a fee must collect and remit the state lodgings tax and parallel local levies, unless a written agreement says the owner remits[4][5]ClauseClauseClauseClauseClauseClause Section 40-26-1.1 of the Code of Alabama (the Alabama Tourism Tax Protection Act of 2024, Act 2024-334) says an accommodations intermediary, meaning a business other than the owner that facilitates a lodging transaction and charges the guest a room or accommodations fee it keeps as compensation, must collect and remit the state lodgings tax and parallel local levies for transactions on or after January 1, 2025. The tax is charged on the room charge, the full retail price the guest pays including any fees. When the intermediary handles the booking for an accommodations provider (an owner with an active lodgings tax account who collects and remits the tax), the tax collected may be remitted to the provider if an executed written agreement says who remits it, and the intermediary is then not liable for tax the provider fails to remit. The intermediary must state the tax separately on the bill. Where the owner has hired a licensed professional property management company, that company is the merchant of record. The Department of Revenue's notice describes the same rules. Which local lodgings taxes a platform collects in a given place is not stated in these sources; check with the platform and the local tax office. |
| Annual address report to the Department of Revenue | Booking platforms and owners who remit lodgings tax must report each year every address rented for more than 14 days in the previous year (some managers and hotels are exempt)[4][5]ClauseClauseClause Section 40-26-1.1(g) requires every accommodations intermediary and accommodations provider to submit an annual report, in a form set by the Department of Revenue, listing the physical address of each accommodation rented or furnished for more than 14 days during the previous year; the report is confidential taxpayer information. Exempt are licensed professional property management companies that collect and remit the state lodgings tax (or manage homes leased for a month or more as the tenant's principal residence), hotels that collect and remit the tax, tourism marketing organizations funded by the tax, and marina, tent camping and RV providers that collect and remit it. The Department of Revenue's notice describes the same reporting rule and exemptions. |
Changes
Recent and pending changes
We read Article 14 (Short-Term Rental Regulations, Secs. 14.01 to 14.11) of the zoning appendix and the Code of Ordinances title page for the City of Oxford, Alabama on Municode, fetched October 16, 2026. We did not read the rest of the zoning appendix, the zoning map, the business license fee schedule, Article III of Chapter 22 or City Council and Planning Commission agendas, so we will watch the Code and Council actions for changes to Article 14.
Oxford added the short-term rental article (first numbered Article 13, redesignated Article 14), requiring Council-approved designation, an annual permit and business license, setting operating standards, a lodging tax rate and penalties.
Sources
Every rule above links to one of these
Newsletter
Not tracking Oxford specifically?
One email a month with STR rule changes across the US markets we track.
No spam. Unsubscribe anytime. See our privacy policy.
Questions
Managing properties in several cities?
Tell us what you're trying to decide and which markets you operate in. We read every message.
This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.