LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 500 SLS 24RS 596
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 1, 2024 11:51 AM Author: REESE
Dept./Agy.: LA Gaming Control Board & Local Taxes
Subject: Local Taxes on Non-gaming Incentives & Inducements Analyst: Noah O’Dell
TAX/TAXATION EN SEE FISC NOTE See Note Page 1 of 1
Provides relative to the levy of local fees and taxes on certain non-gaming incentives or inducements granted by certain
licensees. (gov sig)
Current law provides for the levying of local sales and use tax upon certain tangible personal property (TPP) and services as
a percentage of the transaction value, including a valuation for considerations other than cash. Taxable items and services
may include food, beverages, admission to entertainment, hotel stays, and parking among many. Current law provides
exceptions for the land-based casino in New Orleans and the Southwest LA Convention and Visitors Bureau (SLCVB) by
establishing the valuation of certain gratis or discounted inducements for purposes of taxation.
Proposed law retains current law in regard to local sales tax exceptions for SLCVB and the land-based casino in New Orleans.
Proposed law specifies that local sales and use tax on certain complimentary incentive or inducements are to be paid on
actual transaction or use value. Proposed law prohibits local sales and use tax on non-gaming incentives or inducements,
including room stays, granted by a riverboat or slot machine licensee.
The bill is specified as interpretative, not substantive. Effective upon signature
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. Local governments
should be able to absorb related expenses due to the number of impacted remitters in each jurisdiction. Legal expenses are
not considered.
REVENUE EXPLANATION
The LFO cannot discern the impact of the bill related to local sales and use taxes on services provided as non-
gaming inducements and incentives. Conflicting information from impacted parties concerning actual remittances
restricts the analysis of the local impact without further extensive review beyond the scope of LFO resources.
To the extent local sales and use taxes are being remitted and are no longer due under the bill for non-gaming inducements
or incentives, including certain room stays, local revenue will decline. Should the bill serve to educate impacted vendors on
taxable transactions regarding other inducements or incentives, additional taxes may be remitted or remittances could be
adjusted lower utilizing accounting methodology as allowed in the bill. The net impact is impossible to discern with the
information provided by stakeholders.
The LFO is unclear if the “interpretative and not substantive” language in the bill may expose potential retroactivity,
potentially leading to an additional local impact through mandatory refunds.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Deborah Vivien
x 13.5.2 >= $500,000 Annual Tax or Fee x 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}