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Regular Session, 2012
SENATE BILL NO. 767 (Substitute of Senate Bill No. 573 by Senator Murray)
BY SENATOR MURRAY
SPECIAL DISTRICTS. Creates the New Orleans Hospitality Zone. (gov sig)
AN ACT1
To enact Subpart B-28 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised Statutes2
of 1950, to be comprised of R.S. 33:130.551 through 130.558, relative to economic3
and community development in Orleans Parish; to provide for the levy and collection4
of taxes, with voter approval; to provide relative to the avails of the taxes; to provide5
for annual reporting; to provide for public records; to provide for an effective date6
and a termination date; and to provide for related matters.7
Notice of intention to introduce this Act has been published.8
Be it enacted by the Legislature of Louisiana:9
Section 1. Subpart B-28 of Part IV of Chapter 1 of Title 33 of the Louisiana Revised10
Statutes of 1950, comprised of R.S. 33:130.551 through 130.558, is hereby enacted to read11
as follows: 12
SUBPART B. NEW ORLEANS HOSPITALITY ZONE13
§130.551. Title14
The provisions of this Subpart shall hereafter be known as the "New15
Orleans Hospitality Zone Act".16
§130.552. New Orleans Hospitality Zone; creation17 SB NO. 767
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There is hereby created in the city of New Orleans, the New Orleans1
Hospitality Zone.2
§130.553. Definitions3
As used in this Subpart:4
(1) "City" means the city of New Orleans.5
(2) "Fund" means the Hospitality Zone Dedicated Fund hereby created6
as a special and distinct fund within the city of New Orleans.7
(3) "Hospitality zone" means all territories within the boundaries of the8
Pontchartrain Expressway, at the point where it intersects with the Mississippi9
River to Claiborne overpass/ I-10; I-10 to Canal Street; Canal Street to North10
Rampart, along the rear property lines of parcels that front on the down river11
side of Canal Street; North Rampart to Esplanade, along the rear property lines12
of parcels that front on the lakeside of North Rampart; Esplanade to the13
Mississippi River, along the rear property lines of parcels that front on the14
down river side of Esplanade; the Mississippi River back to the point where it15
intersects with the Pontchartrain Expressway.16
(4) "Hotel" means any establishment engaged in the business of17
furnishing or providing rooms intended or designed for dwelling, lodging, or18
sleeping purposes to transient guests where such establishment consists of ten19
or more guest rooms and rents for more than ten dollars per day, but does not20
include any hospital, convalescent or nursing home or sanitarium, or any21
hotel-like facility operated by or in connection with a hospital or medical clinic22
providing rooms exclusively for patients and their families.23
(5) "Mayor" means the mayor of the city of New Orleans.24
§130.554. Purpose25
The zone is created to improve the quality of life for the residents within26
the hospitality zone and to provide for cooperative economic and community27
development that grows the tourism industry among the city, the state, and the28
owners of property in the hospitality zone, including, but not limited to29 SB NO. 767
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enhancing the development of and improvement to the properties within the1
hospitality zone, to promote tourism and improve the quality of the experience2
for visitors and manage the impact on neighborhoods within the hospitality3
zone, to provide enhanced public safety and sanitation within the zone, to4
provide for signage and lighting within the hospitality zone, to provide for5
property renewal and repair within the zone, and to expand the entertainment6
and leisure activities and facilities within the hospitality zone.7
§130.555. New Orleans Hospitality Zone Dedicated Fund8
A. There shall be a special and distinct fund in the city known as the9
Hospitality Zone Dedicated Fund.10
B. Money in the New Orleans Hospitality Zone Dedicated Fund shall be11
allocated and used according to funding recommendations of the New Orleans12
City Council. The recommendations shall be made and prioritized in order to13
enhance public safety, sanitation, infrastructure, and enforcement, parks and14
parkways, or other projects within the Hospitality Zone, with priority15
considerations given to the needs of the French Quarter area. In no case shall16
the total amount of money allocated from the fund for the French Quarter area17
in such recommendations be less than a reasonable estimate of the proceeds of18
the additional taxes authorized by R.S. 33:130.556 collected from the French19
Quarter area.20
C. Funds in the Hospitality Zone Dedicated Fund shall supplement and21
enhance services routinely provided by the city or its agencies.22
§130.556. Levy of Taxes23
A. It is expressly provided that any taxes levied by the city may exceed24
the limitation set forth by Article VI, Section 29(A) of the Constitution of25
Louisiana and shall be imposed, collected, and enforced subject to the terms of26
the resolution imposing the tax and the provisions of Chapter 2 of Subtitle II of27
Chapter 47 of the Louisiana Revised Statutes of 1950.28
B.(1) Notwithstanding any law to the contrary, the provisions of this29 SB NO. 767
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Subsection shall apply to the levy of any tax in the city under any authority1
provided in this Subpart. Any taxes of any type to be levied in the city, shall be2
levied only after the New Orleans City Council has adopted an appropriate3
resolution giving notice of its intention to levy such taxes, which resolution shall4
include a general description of the taxes to be levied, and notice of this5
intention shall be published twice in the official journal of the parish.6
(2) Such taxes may be levied only after the proposition for the levy of7
such taxes has been submitted to the electors of the city at an election held for8
that purpose and the proposition has received the favorable vote of a majority9
of the electors voting in such election. This Section does and shall be construed10
to provide a complete and additional method for the levy of the taxes authorized11
in this Section and no other proceeding, notice, or approval shall be required.12
C. The city is hereby authorized and empowered to levy an additional tax13
on the occupancy of hotel rooms in the city in an aggregate amount not to14
exceed one and three-quarters percent (1.75%) at any time.15
D.(1) The city is hereby further authorized and empowered to levy an16
additional tax on the sale at retail of food and beverages for consumption on or17
off the premises , not intended for home consumption, in the area bound by the18
Pontchartrain Expressway to Claiborne overpass/ I-10; Claiborne overpass/ I-19
10 to Canal Street; Canal Street to North Rampart, along the rear property20
lines of parcels that front on the down river side of Canal Street; North21
Rampart to Esplanade, along the rear property lines of parcels that front on the22
lakeside of North Rampart; Esplanade to the Mississippi River, along the rear23
property lines of parcels that front on the down river side of Esplanade; the24
Mississippi River to the Pontchartrain Expressway in an aggregate amount not25
to exceed 0.2495% at any time.26
(2) Such tax shall be paid by the person who purchases such food or27
beverage and shall be paid at the time that the charge for the food or beverage28
is paid at any establishment or operation including, any fixed or mobile29 SB NO. 767
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restaurant, coffee shop, cafeteria, short order café, luncheonette, grill, tearoom,1
sandwich shop, tavern, bar, cocktail lounge, nightclub, roadside stand,2
industrial feeding establishment, catering establishment, and any other3
establishment or operation where food or drink is served or provided for the4
public or similar place in which food or drink is prepared for sale or service on5
the premises. However, the food and beverage tax shall not apply to meals6
furnished to any of the following: the staff and students of educational7
institutions, including kindergartens, the staff and patients of hospitals or health8
facilities, to occasional meals furnished in connection with or by educational,9
religious, or medical organizations if the meals are consumed on the premises10
where purchased.11
E. The city is hereby further authorized and empowered to levy an12
additional one percent tax with respect to overnight registered guest's overnight13
parking.14
F. The avails of the tax as authorized in Subparagraph C and15
Subsections D and E of this Section shall be distributed electronically each16
month as follows:17
(1) Twenty percent to the New Orleans Metropolitan Convention and18
Visitors Bureau for tourism marketing.19
(2) Twenty percent to the New Orleans Tourism Marketing Corporation20
for tourism marketing.21
(3)(a) Forty percent to the Hospitality Zone Dedicated Fund. Money in22
the fund shall be used solely for enhanced city services and shall only be used23
for enhanced public safety, sanitation, infrastructure, and maintenance thereof,24
and code enforcement.25
(b)Funds in the Hospitality Zone Dedicated Fund shall supplement and26
enhance those services routinely provided by the city or its agencies.27
(4) Ten percent to the New Orleans Multicultural Tourism Network.28
(5) Ten percent to the French Quarter Management District. This shall29 SB NO. 767
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be considered as supplemental funding for the district and shall not be1
considered to supplant any existing funding for the district nor prohibit any2
additional allocations from the Hospitality Zone Dedicated Fund.3
G. Any tax levied under this Section shall be in addition to all other taxes4
and shall be collected at the same time and in the same manner and pursuant5
to the practices and procedures set forth in the Uniform Local Sales Tax Code6
in Chapter 2-D of Subtitle II of Title 47 of the Louisiana Revised Statutes of7
1950.8
§130.557. Accountability9
A. There shall be a public accounting of all funds received as a result of10
this Subpart as well as a prompt response to public records request in relation11
to these funds irrespective of the status of the receiving organization.12
B. All entities identified for funding under R.S. 33:130.556(F), except13
R.S. 33:130.556(F)(3), shall submit an annual report to the New Orleans City14
Council and the legislature that identifies their use and allocation of the funds.15
The annual report shall be submitted on October first each year. The first16
report shall be due October 1, 2013, and shall cover allocations made in the17
prior fiscal year.18
§130.558. Liberal construction19
This Subpart, being necessary for the welfare of the state, the city-parish,20
and its residents, shall be liberally construed to effect the purposes thereof.21
Section 2. If any provision or item of this Act, or the application thereof, is held22
invalid, such invalidity shall not affect other provisions, items, or applications of the act23
which can be given effect without the invalid provision, item, or application and to this end24
the provisions of this Act are hereby declared severable.25
Section 3. The provisions of this Act shall be null and void and of no effect after26
January 1, 2022. 27
Section 4. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29 SB NO. 767
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by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Dawn Romero Watson.
DIGEST
Murray (SB 767)
Proposed law creates and provides relative to the New Orleans Hospitality Zone.
Proposed law provides for the purpose and the boundaries of the hospitality zone.
Proposed law recognizes the Hospitality Zone Dedicated Fund as a special and distinct fund
in the city of New Orleans. Provides that money in the fund be allocated and used according
to funding recommendations of the New Orleans City Council. Provides that the
recommendations be made and prioritized in order to enhance public safety, sanitation,
infrastructure, and enforcement, parks and parkways, or the projects within the hospitality
zone. Requires that the total amount of money allocated from the fund for the French
Quarter area shall not be less than a reasonable estimate of the proceeds of the proposed law
taxes collected from the area for the fund.
Proposed law authorizes the city of New Orleans to levy and collect certain additional taxes.
Requires that prior to the levy of such taxes the following must occur:
1.The New Orleans City Council must adopt a resolution giving notice of its intent to
levy the tax which shall include a general description of the taxes to be levied.
2. Such notice of intent shall be published twice in the official journal of Orleans
Parish.
3. The proposition for the levy be submitted to the voters at an election held for that
purpose and such proposition receive a favorable vote of the majority of voters
voting in such election.
Proposed law authorizes the city, after meeting the requirements, to levy and collect the
following taxes, which are:
1.An additional tax on the occupancy of hotel rooms in the city in an aggregate amount
not to exceed 1.75%.
2.An additional tax on the sale at retail of food and beverages for consumption on or
off premises, and not intended for home consumption, in an aggregate amount not
to exceed 0.2495%. This tax is limited to the area bound by the Pontchartrain
Expressway to Claiborne overpass/ I-10; Claiborne overpass/ I-10 to Canal Street;
Canal Street to North Rampart, along the rear property lines of parcels that front on
the downriver side of Canal Street; North Rampart to Esplanade, along the rear
property lines of parcels that front on the lakeside of North Rampart; Esplanade to
the Mississippi River, along the rear property lines of parcels that front on the
downriver side of Esplanade; the Mississippi River to the Pontchartrain Expressway.
Provides for certain exceptions.
3. An additional 1% with respect to overnight registered guest's overnight parking. SB NO. 767
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Proposed law provides for the avails of the tax to be distributed electronically each month
as follows:
1. 20% to the New Orleans Metropolitan Convention and Visitors Bureau for tourism
marketing.
2. 20% to the New Orleans Tourism Marketing Corporation for tourism marketing.
3. 40% to the Hospitality Zone Dedicated Fund.
4. 10% to the New Orleans Multicultural Tourism Network.
5. 10% to the French Quarter Management District. Specifically provides that such
funding shall be considered supplemental and shall not prohibit additional funding
from the Hospitality Zone Dedicated Fund.
Proposed law provides that there shall be a public accounting of all funds received as a result
of proposed law. Requires a prompt response to a public records request in relation to funds
irrespective of the status of the receiving organization.
Proposed law requires that all entities receiving the distribution of the tax avails, except the
city of New Orleans, to submit an annual report to the New Orleans City Council and the
legislature that identifies their use and allocation of the funds. Requires the initial report to
be submitted October 1, 2013, and cover allocations made in the prior fiscal year.
Provides a sunset date of proposed law of January 1, 2022.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 33:130.551-558)