HLS 19RS-382 ORIGINAL
2019 Regular Session
HOUSE BILL NO. 522
BY REPRESENTATIVE ABRAMSON
TAX/SALES-USE, LOCAL: Provides relative to the levy of sales and use taxes in the city
of New Orleans
1 AN ACT
2To amend and reenact the third unnumbered Subparagraph of Paragraph (M) of Section 47
3 of Article XIV of the Constitution of 1921, continued as statute by Article XIV,
4 Section 16, of the Constitution of 1974, and to enact R.S. 47:338.220, relative to the
5 city of New Orleans; to provide relative to the levy of sales and use taxes on hotels
6 within the Louisiana Stadium and Exposition District; to provide relative to the city's
7 authority to levy certain suspended taxes; to authorize the governing authority of the
8 city to levy an additional hotel occupancy tax; to provide for the use of tax proceeds;
9 and to provide for related matters.
10 Notice of intention to introduce this Act has been published
11 as provided by Article III, Section 13 of the Constitution of
12 Louisiana.
13Be it enacted by the Legislature of Louisiana:
14 Section 1. The third unnumbered Subparagraph of Paragraph (M) of Section 47 of
15Article XIV of the Constitution of 1921, continued as statute by Article XIV, Section 16, of
16the Constitution of 1974, is hereby amended to read as follows:
17 §47. Louisiana Stadium and Exposition District
18 * * *
19 (M)
20 * * *
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HB NO. 522
1 In the event the occupancy tax is imposed as herein provided, the two percent
2 state sales and use tax on hotel fees and rentals covered by the occupancy tax, as well
3 as all other local sales or use taxes levied within the District prior to the effective
4 date of this amendment by any political subdivision of the State on such hotel fees
5 and rentals, except three-fourths of the sales and use taxes levied by the city of New
6 Orleans, shall be abated during the period of the levy of the occupancy tax, it being
7 the intention of this amendment to exempt such rentals and fees from the said sales
8 and use taxes in consideration of the economic and financial benefits accruing to the
9 state, the City of New Orleans and the Parish of Jefferson from the construction and
10 operation of the District's facilities. Provided, however, that the Orleans Parish
11 School Board may levy or continue to levy on such hotel fees and rentals its one
12 percent sales and use tax authorized at a special election held on May 3, 1966; the
13 Jefferson Parish School Board may levy or continue to levy on such hotel fees and
14 rentals its one-half of one percent sales and use tax authorized at a special election
15 held on May 3, 1966; and the Jefferson Parish School Board shall continue to receive
16 and the governing authority of the Parish of Jefferson shall continue to levy for the
17 benefit of said School Board on such hotel fees and rentals fifty percent of the one
18 percent sales and use tax authorized at a special election held on October 5, 1954, it
19 being the further intention of this amendment that the present rate of the sales and
20 use taxes being levied by or accruing to such school boards under existing law shall
21 not be abated or diminished.
22 * * *
23 Section 2. The third unnumbered Subparagraph of Paragraph (M) of Section 47 of
24Article XIV of the Constitution of 1921, continued as statute by Article XIV, Section 16, of
25the Constitution of 1974, is hereby amended to read as follows:
26 §47. Louisiana Stadium and Exposition District
27 * * *
28 (M)
29 * * *
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HB NO. 522
1 In the event the occupancy tax is imposed as provided in this Paragraph, the
2 two percent state sales and use tax on hotel fees and rentals covered by the
3 occupancy tax, as well as all other local sales or use taxes levied within the district
4 prior to November 8, 1966, by any political subdivision of the state on such hotel
5 fees and rentals, except three-fourths of the sales and use taxes levied by the city of
6 New Orleans, shall be abated during the period of the levy of the occupancy tax, it
7 being the intention of this Subparagraph to exempt such rentals and fees from the
8 said sales and use taxes in consideration of the economic and financial benefits
9 accruing to the state of Louisiana and the parish of Jefferson from the construction
10 and operation of the district's facilities. Provided, however, that the Orleans Parish
11 school board may levy or continue to levy on such hotel fees and rentals its one
12 percent sales and use tax authorized at a special election held on May 3, 1966; the
13 Jefferson Parish school board may levy or continue to levy on such hotel fees and
14 rentals its one-half of one percent sales and use tax authorized at a special election
15 held on May 3, 1966; and the Jefferson Parish school board shall continue to receive
16 and the governing authority of the parish of Jefferson shall continue to levy for the
17 benefit of the school board on such hotel fees and rentals fifty percent of the one
18 percent sales and use tax authorized at a special election held on October 5, 1954, it
19 being the further intention of this Subparagraph that the present rate of the sales and
20 use taxes being levied by or accruing to such school boards under existing law shall
21 not be abated or diminished.
22 * * *
23 Section 3. R.S. 47:338.220 is hereby enacted to read as follows:
24 A.(1) Notwithstanding any other provision of law to the contrary, the
25 governing authority of the city of New Orleans may levy and collect an additional
26 tax upon the paid occupancy of hotel rooms located within the city of New Orleans
27 at a rate not to exceed two-tenths percent of the rent or fee charged for occupancy.
28 (2) The word "hotel" as used in this Section means any establishment
29 engaged in the business of furnishing or providing rooms intended or designed for
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HB NO. 522
1 dwelling, lodging or sleeping purposes to transient guests, where such establishment
2 consists of ten or more guest rooms. "Hotel" does not include any hospital,
3 convalescent or nursing home or sanitarium, or any hotel-like facility operated by or
4 in connection with a hospital or medical clinic providing rooms exclusively for
5 patients and their families.
6 (3) The person who exercises or is entitled to occupancy of the hotel room
7 shall pay the hotel occupancy tax at the time the rent or fee for occupancy is paid.
8 "Person" as used in this Paragraph shall have the same definition as that contained
9 in R.S. 47:301(8).
10 B. The governing authority of the city of New Orleans shall impose the hotel
11 occupancy tax by ordinance or resolution. The governing authority may adopt such
12 ordinance or resolution only after a proposition authorizing the levy of the tax has
13 been approved by a majority of the electors of the city of New Orleans voting at an
14 election held for that purpose in accordance with the Louisiana Election Code. The
15 governing authority may provide in the ordinance or resolution necessary and
16 appropriate rules and regulations for the imposition, collection, and enforcement of
17 the hotel occupancy tax.
18 C. The governing authority may enter into a contract with any public entity
19 authorized to collect sales or use taxes, under such terms and conditions as it may
20 deem appropriate, including payment of a reasonable collection fee, for the
21 collection of the hotel occupancy tax authorized by this Section. The hotel
22 occupancy tax shall be in addition to all taxes levied upon the occupancy of hotel
23 rooms located within the city of New Orleans.
24 D. Except as provided in Subsection C of this Section, the proceeds of the
25 tax authorized by this Section and all revenue received by the city of New Orleans
26 as a result of the provisions of the Act that enacted this Section shall be deposited
27 into the infrastructure fund of the city.
28 Section 4.(A) Section 2 and 3 of this Act shall become effective on January 1, 2025.
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HB NO. 522
1 (B) Section 1, and this Section of this Act shall become effective on July 1, 2019;
2if vetoed by the governor and subsequently approved by the legislature, this Act shall
3become effective on July 1, 2019, or on the day following such approval by the legislature,
4whichever is later.
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 522 Original 2019 Regular Session Abramson
Abstract: Relative to the city of New Orleans, provides relative to the authority of the city
to levy suspended sales and use taxes on hotels and authorizes the city to levy an
additional hotel occupancy tax, not to exceed .2%, beginning July 1, 2025.
Present law creates and provides for the La. Stadium and Exposition District, as a political
subdivision of the state composed of all of the territory in the parishes of Orleans and
Jefferson. Provides for the district's governance.
Proposed law retains present law.
Present law authorizes the district to levy a hotel occupancy tax. Provides that the 2% state
sales and use tax on hotel fees and rentals and all local sales and use taxes levied within the
district prior to Nov. 8, 1966, are abated during the period that the hotel occupancy tax is
levied. Prohibits the district from levying the hotel occupancy tax until the governing
authorities of the city of New Orleans and Jefferson Parish consent to the abatement of their
local sales and use taxes. Authorizes the school boards in the city of New Orleans and
Jefferson Parish to continue levying their local sales and use taxes.
Proposed law retains present law but excepts 3/4 of the sales and use taxes levied by the city
of New Orleans from the abatement, beginning July 1, 2019. Proposed law further excepts
all sales and use taxes levied by the city, beginning July 1, 2025.
Proposed law authorizes the city to levy, subject to voter approval, a hotel occupancy tax at
a rate not to exceed .2%.
Proposed law also provides that revenue derived from taxes authorized by proposed law
shall be deposited into the infrastructure fund of the city.
Effective in part on July 1, 2019.
Effective in part on July 1, 2025.
(Amends Art. XIV, §47(M)(third unnumbered Subparagraph) of the Const. of 1921; Adds
R.S. 338.220)
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