Authorizes the governing authority of the city of New Orleans to levy a tax on short term rentals of overnight lodging (EN +$10,500,000 LF RV See Note)
The implementation of HB 43 has implications for local revenue generation, specifically targeting the booming short-term rental market in New Orleans, which is exacerbated by platforms such as Airbnb. The tax proceeds are designated to support tourism promotion and enhance the city’s infrastructure, with 25% allocated for tourism promotion through New Orleans & Company, and the remaining 75% directed to the city’s infrastructure fund. This could lead to significant financial benefits for the community, enhancing services and amenities funded through this new tax revenue.
House Bill 43, enacted in Louisiana, provides the governing authority of the city of New Orleans the permission to levy an occupancy tax on short-term rentals, contingent upon voter approval. The tax rate is capped at six and three-quarters percent and applies to all paid occupancies of residential dwellings for durations of less than thirty consecutive days. This legislation aims to create a new revenue stream for the city, while explicitly stating that hotels and other established lodging types are not classified as short-term rentals under this tax.
The sentiment surrounding HB 43 appears generally positive among supporters, who view it as a proactive approach to regulate a rapidly growing sector that previously operated with minimal oversight. Policymakers and advocates emphasize the potential for increased funding directed toward essential city services and tourism initiatives. Critics may voice concerns about the potential burden on property owners and the accessibility of short-term rentals for visitors in the city.
Notably, discussions around this bill have highlighted a tension between the desire for increased revenue through new taxation and the regulatory implications placed on property owners in the short-term rental market. Some stakeholders may object to the new tax, arguing it could deter property owners from entering or remaining in the short-term rental market, potentially impacting the availability of affordable lodging options for visitors. The requirement of voter approval for the levy may also introduce additional complexities and delays in implementation.