Taxes for Airbnb and other short-term leases in New Orleans would go to the city rather than the state under legislation advanced Tuesday by the House Appropriations Committee.
The panel voted 11-5 after some representatives complained that New Orleans gets too much money at the expense of the rest of the state.
“I would rather that the state dollars stay in the state general fund (from which state government pays much of its operating expenses) than to give it to the city of New Orleans,” said Appropriations Chairman Cameron Henry, R-Metairie.
New Orleans began accepting applications for short-term rental licenses on March 13, 2017, t…
However, Rep. Helena Moreno, D-New Orleans, said her House Bill 224 would handle taxes for residents who rent their homes to tourists the same way that taxes for brick-and-mortar hotels and motels are dedicated across the rest of the state. The short-term lease tax was instituted on July 1, 2016.
Typically, the taxes are returned by the state to local governments for uses like tourism marketing and economic development.
“We’re saying, 'Let’s be consistent,' ” Moreno said.
A larger share taxes generated by short-term rentals on platforms such as Airbnb would go to…
Currently, the state sales taxes levied on these rooms are dedicated to the Ernest N. Morial Convention Center, Saints contractual obligations and a small amount to the New Orleans Area Economic Development Fund. The remaining 2 percent is not dedicated and flows into state coffers.
HB224 would send most of that 2 percent from short-term leases into the New Orleans Quality of Life Fund.
The Legislative Fiscal Office could not calculate how much would be raised from the tax and what the impact would be on the state general fund.
The short-term rental plan being pushed by Mayor Mitch Landrieu's administration may allow h…