LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 681 HLS 21RS 1264
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 4, 2021 10:59 AM Author: BOURRIAQUE
Dept./Agy.: Revenue
Subject: Sales Tax Exclusion: Certain Hotels Analyst: Benjamin Vincent
TAX OR DECREASE SD RV See Note Page 1 of 1
Provides an exclusion from sales and use taxes for certain establishments
Present law levies state sales and use taxes on certain furnishing of sleeping rooms by hotels. Taxes on these purchases are
dedicated to various parish tourism and visitor enterprise funds. Certain nonprofit, camp, and retreat facilities are excluded
from state tax on these purchases. Present law additionally authorizes certain commissions to levy taxes on the occupancy
of hotel rooms, motel rooms, and overnight camping facilities.
Proposed law excludes facilities zoned by local ordinance as disaster recovery housing, temporary workforce housing, and
other establishments that are not available for use by the general public from sales and use tax and certain occupancy
taxes.
Effective August 1, 2021.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. INCREASE $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
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other DECREASE DECREASE DECREASE DECREASE DECREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
LDR reports that modifying the revising the various affected hotel/motel returns will require expenditures for tax return form
redesign, and for computer system modification, development, and testing, amounting to approximately $51,000 of staff
time.
REVENUE EXPLANATION
Proposed law would exclude certain purchases that are currently taxable as the furnishing of a sleeping room from state
sales and use tax and certain occupancy taxes, resulting in an indeterminable decrease in revenues. A large portion of the
sales impacted by proposed law are dedicated to various local tourist and visitor commissions, and to the extent that such
purchases are made at locations that do not have an associated dedication, proposed law would additionally cause a
reduction in state general fund revenues.
For information purposes, LDR reports that audits of certain temporary workforce housing has yielded an assessment of
uncollected revenues on approximately $10 million of taxable transactions that would be excluded from taxation under
proposed law. Information on other types of furnished rooms that would be excluded by proposed law is not currently
available.
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}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}