State Regulation

Louisiana, a state rich in culture and history, has seen a notable increase in short-term rentals, particularly in its most iconic city, New Orleans. This surge is attributed to the state's unique appeal, blending deep-rooted traditions, vibrant music scenes, and a renowned culinary landscape. Short-term rentals have become a popular accommodation choice for tourists seeking a more personal and localized experience. However, this rise has also brought regulatory challenges and debates about the impact on local communities and housing markets. Louisiana's approach to managing these rentals varies by city, with New Orleans implementing specific regulations to balance tourism benefits with community needs. As such, short-term rentals in Louisiana present a dynamic intersection of tourism, local culture, and regulatory considerations.

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Is there a statewide definition of STR?

In Louisiana, a short-term rental, also known as a transient rental, is defined as any rental of accommodation for a period of less than 30 consecutive days. This encompasses various types of rentals, including nightly or weekly stays. Rentals that extend for 30 days or longer do not fall under the category of short-term rentals in the state. It's important to note that both state and local authorities have a role in overseeing these rentals, with state-level safety standards set by the state fire marshal's office, and local governments enacting their own specific ordinances related to registration, permitting, taxes, and operational aspects.

statewide registration requirement
Statewide Registration Requirement

At the state level, hosts are required to obtain a state sales tax registration certificate. This is a crucial step for anyone looking to operate a short-term rental in Louisiana. Additionally, the state fire marshal's office oversees safety standards for all STRs, ensuring they meet high-level safety requirements.

Local authorities in various parishes and municipalities also have the power to set their own rules regarding short-term rentals. These local regulations can include aspects like registration, permits, taxes, occupancy limits, and operational requirements. For instance, in Baton Rouge, hosts must register for a lodging tax license under the new law effective from August 2023. They are also required to comply with regulations that include permit requirements and occupancy limits. Hosts must adhere to these rules and ensure that they register and file lodging tax returns with both city and state tax authorities.

What is the length of stay of STR in the state?

Yes, short-term rentals (STRs) are legal in Louisiana, but the regulations can vary significantly by locality.

Statewide Tax Requirement

Short-term rental operators must comply with state and local tax requirements. As a host, if you're renting out a room, apartment, house, or other dwelling for short-term stays, you're likely responsible for collecting, filing, and remitting short-term rental taxes to Louisiana tax authorities.

The taxes applicable to short-term rentals in Louisiana include state sales tax and, depending on your location, various local lodging taxes and fees. For instance, in Orleans Parish, specific taxes like the Stadium and Exposition District Room Occupancy Tax and the Ernest N. Morial New Orleans Exhibition Hall Authority Tax may apply. These taxes are a percentage of the cost of your guest’s stay and are added to the price on the bill. The host is responsible for collecting these taxes from guests and remitting them to the relevant tax authority.

It's important to register with the Louisiana Department of Revenue before you start collecting taxes. This involves obtaining a Sales Tax License and understanding the process for filing your lodging taxes. You may also need to register with local tax authorities and comply with their filing requirements.

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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