Tax Facts Index
EAST BATON ROUGE PARISH
|Department of Finance
Vol. 9, No. 3
The applicability of Sales Tax & Occupancy Tax on Hotel
The Sales and Use Tax Ordinance defines "Sales of Services"
to include the furnishing of rooms by hotels and tourist camps as a service subject to
sales tax. The term "hotel" is defined as any establishment engaged in the
business of furnishing sleeping rooms, cottages or cabins to transient guests when such
establishment consists of six or more guests (sleeping) rooms at a single location.
The term "tourist camp" means any establishment engaged in the business of
furnishing rooms, cottages or cabins to tourists or other transient guests when the number
of guest rooms, cottages or cabins at a single location is six or more. The classification
is determined by the type of guest (transient or permanent) accommodated and the number of
units at each location. It is immaterial whether or not cooking and eating facilities are
provided. If an establishment contains less than six sleeping rooms, cottages or cabins,
sales tax does not apply.
Sales tax applies only to charges made to transient guests. Whether the
guests of a particular establishment are transient or not must be determined on the basis
of the facts of each case. A guest who pays for a room by the month and who resides in the
establishment for 60 consecutive days shall be considered a permanent guest and sales tax
would not apply. The hotel-motel occupancy tax does not apply to a guest who rents a room
for 30 or more consecutive days or on an annual contract basis. Sales taxes and
hotel-motel occupancy taxes paid to an establishment during the first 60 or 30 days
referred to above are not refundable.
Employees of the federal, state or local government are not exempt from
the payment of sales tax or hotel-motel occupancy tax when on non-government travel.
However, room charges billed directly to and paid by Federal, State or Local Governments
are not subject to state or local sales tax. Room charges billed directly to and paid by
the Federal Government are also not subject to hotel-motel occupancy tax.
Recently, the State of Louisiana issued a directive applicable to the
state sales taxes on hotel rooms. This directive does not affect sales or occupancy taxes
levied and collected by this parish. When an employee of the United States Government or
of the State of Louisiana or one of its political subdivisions can document that they are
engaging a hotel room on direct orders from their government employer, and that the room
expenses are reimbursed by the employer, the State Department of Revenue will consider
this sale of lodging services to the employee to be the same as a sale made directly to
the government employer, regardless of the manner of payment. Documentation can be in the
form of either signed written travel orders accompanied by an exemption certificate signed
by the employee or employer or by the presentation of a signed exemption certificate
signed by both the employee and their government employer. These procedures must be
followed at the time the hotel room is occupied and the hotel must retain documentation.
Please also note that these procedures will result in an exemption of the state sales tax
only, it does not apply to City-Parish sales tax nor to the 3% hotel-motel occupancy tax.
Sales tax due dates
Following are the sales tax due dates for the third quarter of 1998:
Returns bearing a U.S. postmark on or after the above delinquent dates
will be assessed penalty, interest and loss of vendor's compensation. Remember to mail
your return early.
Tax Facts is issued quarterly by the Department of Finance/Revenue
Division to provide information concerning developments and policies regarding the
collection of local sales tax within East Baton Rouge Parish.
The Revenue Division invites any suggestions, questions or comments
that you would like addressed in future issues of Tax Facts. Please address these items
City of Baton Rouge
Department of Finance
P. O. Box 2590
Baton Rouge, Louisiana 70821-2590
Assistant Revenue Manager
Taxpayers may call the Revenue Division to receive assistance at the
following telephone numbers between the hours of 8 a.m. and 5 p.m., Monday - Friday.
Occupational License Tax
Business License and Permit Office