Lillian, Alabama

Lillian is unincorporated, so short-term rentals are governed by Baldwin County’s Land Development Code (Sec. 16.75) rather than a town ordinance. The county regulates short-term vacation rentals through certification rather than banning them in residential zones. A rental is defined as a residential dwelling rented to transient guests for 30 consecutive days or less, and a residence rented fewer than 14 days per year is exempt from the definition entirely.

To operate legally, an owner must obtain a Short-Term Vacation Rental Certificate from the Chief Building Official plus an occupation tax certificate, and remit applicable state and county taxes. The application requires owner contact information, a local 24-hour rental agent able to appear on-site within 24 hours of notice, a stated maximum overnight occupancy matching the listing, proof of ownership, and proof of homeowner’s insurance.

Under a recently amended ordinance, certificates now expire annually on December 31 with no automatic renewal, so owners must reapply each year to keep operating, and certificates are non-transferable, meaning a property sale requires a new application. There is no owner-occupancy or primary-residence requirement and no cap on rental nights per year.

Taxes total 6.00%, made up of Alabama’s 4% state lodgings tax plus a 2% Baldwin County lodgings tax, on stays of 179 nights or fewer. Enforcement has recently tightened: violations are now assessed per day rather than per instance, and fines escalate within any 12-month period, from $500 to $1,000 for a first violation, to $1,000 for a second, up to $1,000 plus automatic certificate revocation for a third.