Provides relative to the levy of hotel occupancy taxes and tourism assessments in Orleans Parish (EG SEE FISC NOTE LF RV)
Impact
The changes instituted by HB 521 are expected to have substantial implications for the hospitality sector in Orleans Parish. By reducing the financial obligation on hotels through the lowered assessment rates, the bill aims to foster a more attractive economic environment for tourism, which is vital for the local economy. The introduction of a new hotel occupancy tax, subject to direct voter approval, reflects a balancing act between generating additional revenue for infrastructure while still considering the interests of the hospitality industry. The proceeds from this tax are designated for the parish’s infrastructure fund, indicating a strategic move to divert tourism revenues into community development.
Summary
House Bill 521, introduced in the 2019 Regular Session, aims to modify the existing hotel assessment and establish a new hotel occupancy tax framework within Orleans Parish. The bill decreases the permissible hotel assessment that tourism organizations can levy on their hotel members from 1.75% to 1.5% until the end of 2020 and further reduces it to 1.25% in 2021. This change is designed to ease the financial burden on hotels while maintaining some level of funding for tourism marketing and other related activities. Additionally, the bill empowers the Orleans Parish governing authority to levy a new hotel occupancy tax, provided it receives voter approval, with the initial cap set at 0.25% through 2020, increasing to 0.5% thereafter.
Sentiment
The sentiment towards HB 521 appears to be mixed among stakeholders. Hotel operators and tourism organizations largely view the bill positively, recognizing the need for reduced assessments in the face of competitive pressures. On the other hand, there are concerns regarding the implications of implementing new taxes, even with voter approval. Critics may argue that additional taxes could complicate the business landscape, potentially impacting affordability for tourists. Overall, the bill could symbolize an effort to revitalize the sector while balancing new revenue generation needs.
Contention
A notable point of contention regarding HB 521 is the necessity and practicality of implementing a new hotel occupancy tax in addition to the existing assessments. Although advocates argue this measure is crucial for funding infrastructure improvements that benefit the tourism sector, critics may suggest that adding another layer of taxation could discourage visitors and impact the competitiveness of the local market. The bill's dependency on voter approval further complicates its path forward, as community sentiment will ultimately play a pivotal role in its realization.
Authorizes tourism organizations in Jefferson Parish to levy hotel assessments upon its hotel members and provides for treating such assessments as a surcharge to hotel guests (OR +$1,200,000 LF RV See Note)
Provides relative to taxes levied by the Ernest N. Morial-New Orleans Exhibition Hall Authority and by the city of New Orleans (OR SEE FISC NOTE LF RV)
Authorizes the levy of an optional hotel assessment by a tourism organization upon its hotel members and provides for treating such assessment as a surcharge to hotel guests. (gov sig)