HLS 16RS-957 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 722
BY REPRESENTATIVE MORENO
REVENUE DEPARTMENT: Provides relative to registration of certain online hotel
marketplaces and collection of the tax imposed on certain online hotel sales
1 AN ACT
2To enact R.S. 47:306.4, relative to online hotel sales; to provide for registration of certain
3 online hotel companies; to provide for collection of the tax imposed on online hotel
4 sales; to provide for definitions; to provide for effectiveness; and to provide for
5 related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:306.4 is hereby enacted to read as follows:
8 ยง306.4. Collection from online hotel companies
9 A. As used in this Section, the following terms have the meaning ascribed
10 to them in this Section:
11 (1) "Online hotel marketplace" means any person that provides a digital
12 platform for compensation through which a hotel, as defined in R.S. 47:301(6),
13 offers to furnish to a transient guest a sleeping room, cottage, or cabin.
14 (2) "Online hotel operator" means a hotel, as defined in R.S. 47:301(6), that
15 offers to furnish to a transient guest a sleeping room, cottage, or cabin through an
16 online hotel marketplace.
17 (3) "Online hotel sale" means a sale facilitated through an online hotel
18 marketplace in which there is an amount required to be paid by a transient guest as
19 a condition of occupancy of a residential location to an online hotel operator.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 16RS-957 ENGROSSED
HB NO. 722
1 B. An online hotel marketplace shall register with the Department of
2 Revenue for the payment of the taxes imposed by the state or any local governing
3 authority on any online hotel sale facilitated by the online hotel marketplace. An
4 online hotel marketplace that is registered with the Department of Revenue pursuant
5 to this Section shall remit all taxes collected to the secretary of the Department of
6 Revenue in accordance with the provisions of R.S. 47:306(A), along with a report
7 of the amount of aggregate tax collected from each respective taxing jurisdiction.
8 C. The secretary of the Department of Revenue shall collect all local tax as
9 an agent of local government. The secretary of the Department of Revenue shall
10 distribute monthly the proceeds of the tax to the central local sales and use tax
11 collector or, if none, the parish governing authority. The central local sales and use
12 tax collector or governing authority shall distribute at no charge the tax proceeds
13 received from the secretary of the Department of Revenue to each political
14 subdivision in the parish that levies a tax on the online hotel sale in accordance with
15 the pro rata share of local tax receipts collected to the total of all taxes collected
16 within the parish.
17 Section 2. The provisions of this Act shall become effective July 1, 2016.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 722 Engrossed 2016 Regular Session Moreno
Abstract: Defines "online hotel marketplace", "online hotel operator", and "online hotel
sale". Requires registration by online hotel marketplaces with the Dept. of Revenue
and certain procedures for collecting, remitting, and distributing taxes imposed on
online hotel sales.
Present law provides procedures for collecting and remitting the state sales tax by dealers
to the secretary of the Dept. of Revenue (DOR). Proposed law retains present law.
Proposed law defines the following terms:
(1)"Online hotel marketplace" means any person that provides a digital platform for
hotels to furnish occupancy to a transient guest at a sleeping room, cottage, or cabin
in exchange for compensation.
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 722
(2)"Online hotel operator" means a hotel, as defined in present law, that furnishes
occupancy to a transient guest at a sleeping room, cottage, or cabin through an online
hotel marketplace.
(3)"Online hotel sale" means furnishing occupancy to a transient guest at a residential
location by an online hotel operator facilitated through an online hotel marketplace.
Proposed law requires an online hotel marketplace to register with the DOR for payment of
taxes imposed on online hotel sales facilitated by the online hotel marketplace. Further
requires a registered online hotel marketplace to remit all taxes collected to DOR in
accordance with the provisions of present law, along with a report of the amount of tax
collected from each taxing jurisdiction.
Proposed law designates the secretary of DOR as an agent of local government for purposes
of collecting the local taxes collected by an online hotel marketplace. Further provides for
distribution of the local taxes collected in a pro rata share to the political subdivisions
levying a tax on the online hotel sales.
Effective July 1, 2016.
(Adds R.S. 47:306.4)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change from permissive to mandatory an online hotel marketplace's obligation
to register with the Department of Revenue.
2. For purposes of defining "online hotel marketplace" and "online hotel operator",
delete the qualification that the location for which a hotel is compensated for
furnishing be a residential location.
3. Make technical changes.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.