Louisiana Senate Bill SB151

Louisiana 2020 Regular Session

• Introduced: 2/25/20
• Refer: 2/25/20
• Refer: 3/9/20

Caption

Defines hotel for purposes of occupancy taxes levied by local tourism commissions. (10/1/20)

Impact

The proposed changes expand the definition of a hotel to include any establishment or person that provides overnight accommodations to transient guests, regardless of whether they operate from a single business location or a residential structure such as a house or apartment. This is notable as it extends the taxable scope to more types of accommodations, which could potentially increase revenue for local tourism efforts as they can now tax a wider range of facilities, including those operating in residential zones.

Summary

Senate Bill 151, introduced by Senator Johns, aims to establish a clear and uniform definition of 'hotel' for the purposes of occupancy taxes levied by local tourism commissions and convention and visitors bureaus in Louisiana. The bill seeks to amend existing statutes to ensure that the definition aligns with that used for sales taxes on hotel rooms, thereby eliminating discrepancies that could complicate taxation and compliance for various lodging establishments.

Sentiment

The sentiment around SB 151 appears to be generally positive among tourism stakeholders who support a simplified and consistent regulatory framework. However, there may be some contention from entities like nonprofit organizations, which are exempted under specific circumstances. The bill retains certain exemptions, indicating a balance between taxation intentions and the need to support charitable initiatives within the community.

Contention

Notable points of contention may arise regarding the scope of the new definition, particularly as it includes various forms of accommodation that previously might have escaped taxation. Concerns may surface from nonprofit operators who provide temporary housing for homeless individuals, as the bill retains exceptions but also repurposes the definition that could affect their operations. This complexity invites discussions about the implications for local authorities and the hospitality industry as they navigate the updated laws.