Hotel/Motel Tax

On January 1, 1999, the Hotel / Motel Tax (occupancy tax) increased to 4%. This tax is in addition to the 5% local sales tax and is imposed upon the occupancy of hotel / motel rooms and overnight camping facilities within East Baton Rouge Parish.

The Hotel / Motel tax applies to any establishment engaged in the business of furnishing sleeping rooms, cottages or cabins to tourists or other transient guests when such establishment consists of two (2) or more guest rooms at a single location. This differs from the sales tax which is applied to an establishment consisting of six (6) or more guest rooms.

Posting Your Sales and Use Tax Registration Certificate

Every business that is responsible for collecting and accounting for sales and use tax or who engages in any business involving transactions, for which tax is imposed under the local sales and use tax ordinance, shall apply for and receive a certificate of registration. The certificate must be posted in a conspicuous place within the place of business for which it was issued. The certificate is personal and non-transferable. When there is a change in ownership, the old certificate must be destroyed and a new certificate will be issued upon the registration of the new business.

In addition, if an original certificate of registration is destroyed or defaced, a duplicate certificate will be issued upon request.

Incomplete Tax Returns

The Finance Revenue Division receives numerous incomplete tax returns each and every month. Incomplete tax returns could cause your account to become delinquent. Each month the system generates delinquent letters when a return is incomplete.

When preparing your tax return each month, the following lines must be completed:

1.   Gross Sales
12.  Adjusted Gross Sales
15.  Total Taxable Transactions
16.  Tax
16.(d)  Net Tax Due
18.  Total Tax Due
20.  Net Tax Due (after vendor's compensation)
23.  Total Tax, Penalty, and Interest Due
25. Total Amount Due
26.  Remittance

These lines represent the minimum information we must receive each month to ensure that your return is processed properly. If your business has allowable deductions, sales of food and drugs, etc., you must also complete all other applicable lines. In addition, you must specify the reason for the deduction(s) on the reverse side of the return. Without the specific reason for the deduction(s), your return will be considered incomplete and will result in a delinquent status.

The only exception to the minimum information involves zero or "no sales" returns. For a no sale return, only a zero (0) on line 1 and line 26 is necessary. As we have previously requested, write only a zero (0) where appropriate. Do not write "no sales" on the face of the return. Also, do not write a zero (0) with a line drawn through the middle. As our scanner attempts to read your return, it is looking for specific, identifiable numbers, not words or common derivations used to write a zero (0).

Sales and Use Tax Related to Property Purchased for Lease or Rental

In the 1999 regular session, the Louisiana Legislature enacted Act 1266, which authorized a phase-in of an exclusion of local sales and use tax for all tangible personal property purchased for the purpose of being leased or rented. This act provided that the phase-in would occur beginning July 1, 1999, and continue annually for the next three (3) years. Effective July 1, 2002, purchases of tangible personal property for lease or rental will be totally excluded from sales and use tax.  Presently, and continuing through June 30, 2002, three-fourths (3/4) of the cost price of tangible personal property purchased for lease or rental purposes is excluded from taxation.

Sales Tax Due Dates

    Following are the sales tax due dates for the third quarter of 2002:

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.

Taxpayer Topics

The Tax Facts Newsletter is issued quarterly by the Department of Finance/Revenue Division.  Our mission is to provide taxpayers with 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 to:

City of Baton Rouge - Department of Finance
P. O. Box 2590
Baton Rouge, LA  70821-2590
ATTENTION:  Steve Thomas, Assistant Revenue Manager
or send e-mail to sthomas@brgov.com

Need Help?

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 through Friday.

Proud Member of the Louisiana Association of Tax Administrators