Exempts from local sales and occupancy tax in St. Tammany Parish agreements to furnish for a period of 30 days or longer an accommodation, space, or lot which is in an overnight camping facility or trailer park. (7/1/10) (RE DECREASE LF RV See Note)
Impact
The passage of SB 25 will alter the way local tax revenues are generated from overnight accommodations in St. Tammany Parish. By exempting these longer-term arrangements from taxation, the bill may result in a decrease in local tax revenues from the hospitality sector. However, proponents argue that the policy could ultimately benefit the local economy by encouraging tourism and transient residents to stay longer, thereby increasing business for local establishments. This could also lead to a more stable income for businesses compared to short-term visitors who contribute to the tax base.
Summary
Senate Bill 25 proposes a significant exemption from local occupancy and sales taxes in St. Tammany Parish for agreements related to overnight camping facilities and trailer parks. Specifically, the bill redefines the term 'transient guest' to exclude individuals who occupy accommodations for a period of 30 days or more, thus making them exempt from local occupancy tax. This move is aimed at incentivizing longer-term stays in these facilities and supporting local businesses that operate in this sector, which has become increasingly relevant as tourism and recreational activities grow in the area.
Sentiment
Overall, the sentiment around SB 25 appears to be split among stakeholders. Supporters of the bill, which include local business owners and tourism proponents, view this legislation as a boost to local economic development. They argue that the tax exemption can help encourage longer stays in local campsites and trailer parks, thus fostering a more robust tourist economy. Conversely, opponents may raise concerns about the impact on local tax funding, which relies on occupancy taxes to support various community services and infrastructure.
Contention
Notable points of contention surrounding SB 25 include concerns over the reduction of local tax revenues and the potential implications for public services funded by these taxes. However, supporters emphasize the need to adapt local tax policies to better reflect the changing dynamics of tourism and recreation in the area. This legislative action represents a broader trend of seeking to modernize tax structures to accommodate new business models and changing consumer behaviors, particularly in regions experiencing growth in recreational and outdoor activities.
Exempts from local sales and occupancy tax in certain parishes agreements to furnish for a period of 30 days or longer an accommodation, space, or lot which is in an overnight camping facility or trailer park. (7/1/11)
Authorizes certain parish tourism commissions to levy a hotel occupancy tax and overnight campsite parking tax to be distributed pursuant a cooperative endeavor agreement with the economic development authority. (7/1/18) (EN INCREASE LF RV See Note)