Tax Facts Index
TAX FACTS NEWSLETTER
East Baton Rouge Parish
Department of Finance
Vol. 17, No. 2
Hotel/Motel Occupancy Tax
Over the last several months, important tax
changes have been made regarding the hotel/motel industry. During the first
extraordinary session of 2005, Act 60 was passed which repealed the “thirty (30)
day rule” that exempted guests renting a hotel/motel transient guest room for
thirty days or more from the 4% hotel/motel occupancy tax. In addition, Act 60
also repealed the exemption of the occupancy tax on those hotel/motel rooms
rented on an annual contract basis for consecutive or non-consecutive days. As a
result of this legislation, these deductions will no longer be allowed beginning
with the January 2006 Hotel/Motel Occupancy Tax report.
Hotel/Motel Sales Tax
The following was taken from a Notice of Intent
issued by the Louisiana Department of Revenue, Policy Services Division, dated
February 24, 2006, and specifically deals with a more restrictive definition of
the term hotel for sales tax purposes.
The Department of Revenue, Office of the Secretary, as authorized by and
pursuant to the provisions of the Administrative Procedure Act, R. S. 47:1511,
gives notice of its intent to amend and adopt Louisiana Administrative Code
(LAC) 61:I.4301 relative to sales tax applicable to transactions for hotel
services. Louisiana Revised Statute 43:4301 as well as the Uniform State and
Local Sales Tax Definitions have been changed as follows:
a. The term hotel has been defined under R.S. 47:301(6) to be somewhat
more restrictive than normally construed relative to the size of the
establishment. Those establishments engaged in the business of furnishing
sleeping rooms, cottages or cabins to transient guests that consist of six such
accommodations at a single business location meet the statutory definition. If
an establishment has fewer than six sleeping rooms, cottages or cabins at a
single business location for transient guests, the establishment is not a
hotel for purposes of state and local sales or use tax. The
statutory definition of hotel excludes facilities with fewer than the
specified number of accommodations from collection of state and local sales
or use tax.
b. (i) In determining whether an establishment furnishes hotel services to
transient guests, it is determined that a guest who transacts for the services
of a hotel, regardless of the length of time that the hotel services are used,
is considered a transient guest and the transaction is subject to sales tax.
Where a hotel provides permanent residences to permanent occupants, the
transaction is not subject to state and local sales or use tax.
For the transaction to be considered a rental as a permanent residence to
permanent occupants, the physical properties of the space must provide the basic
elements of a home, including full-sized and integrated kitchen appliances and
facilities. Additionally, the occupant must use the facilities of the hotel as a
home with the intent to permanently remain. When all conditions of the above two
standards are met, the occupant may be considered non-transient for the purposes
of the state and local sales or use tax. A lease with a hotel for
a period of not less than one year will be considered as evidence in support of
permanent residency status, when the area rented contained the required physical
properties of the hotel accommodations at the beginning of the lease. Proof that
hotel rental contained the requisite physical properties of the hotel
accommodations within a unit continuously rented by one person or family for a
period greater than one year will be considered as evidence in support of
permanent residency status. The Department may require additional evidentiary
support of claims of non-transient status.
(ii) For the purposes of state and local sales and use tax collections
under R.S. 47:301 et seq. a guest of a hotel is a natural person.
This change will become effective May 20, 2006, and affects sales tax only.
Please direct questions regarding this topic to the Revenue Division 389-3084.
Following are the sales tax due dates for the second quarter
|For the Month of
||Tax Due Date
Taxpayers may contact the
Revenue Division by phone or fax to receive assistance between the hours of
8 a.m. and 5 p.m., Monday-Friday.
The Tax Facts
Newsletter is issued quarterly by the Finance Department/Revenue
Division. Our mission is to provide taxpayers with information
concerning developments and policies regarding the collection of local sales
and use taxes 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 send these items to:
City of Baton Rouge -
Department of Finance
P. O. Box 2590
Baton Rouge, LA 70821-2590
Attention: Steve Thomas
or send us an e-mail
Remember to mail your return
early! Returns bearing a U.S. postmark on or after the above delinquent
dates will be assessed penalty, interest, and loss of vendor's compensation.
Department of Finance - Revenue Division
222 St. Louis Street, Room 404
Baton Rouge, LA 70802
Proud Member of the Louisiana Association of Tax Administrators