INTRODUCTION BED AND BREAKFAST HISTORIC HOME USE_TAX YOUP IN DU STP~Y A bed and breakfast historic home is any establishment This resource guide was developed to provide basic having up to five (5) sleeping rooms and can be Any items purchased for use in the business or for use ‘COMPliMENTARY ROOMS: Rooms provided at no information concerning bed and breakfast establish- approved for up to nine (9) sleeping rooms by the City charge to guests in connection with the rental of other ments. The information contained herein is intended to by the guests are subject to five (5) percent City use tax Council. on the purchase price of the items if the five (5) percent rooms are subject to the four (4) percent City sales tax familiarize ow’ners/operators of bed and breakfast City sales tax was not paid at the time of purchase. based on fhe amount paid for the other rooms. The establishments with the licenses, permits and fees BED AND BREAKFAST INN Such items include but are not limited to beds, television rooms are also subject to the hotel occupancy privilege required as well as the taxes that should be collected A bed and breakfast inn is any establishment having sets, linens, soaps, shampoos, lotions, complimentary tax. However, in the event the rooms are provided at and/or remitted to the City. six (6) to nine (9) sleeping rooms. breakfast and promotional items. no charge to anyone, the rooms are not subject to the sales tax and the hotel occupancy privilege tax. In addition, the resource guide includes a brief overview of the taxabilityof certain transactions related OCCUPATIONAL LICENSE_TAX ____ ‘COMPLIMENTARY FIEMS: Items provided for use by ADVANCE TAX _____ to the bed and breakfast industry. Though brief in the guests in connection with the room rental are content, any specifics and complexities of each An annual occupational license tax of two dollars subject to the five (5) percent City use tax if the five (5) establishment not addressed in this resource guide Only items purchased for resale are allowed advance ($2.00) for each sleeping room is applicable for all bed tax credit if the five (5) percent City sales tax was paid percent City sales tax was not paid at the time should be addressed to the Technical Services Unit at and breakfast establishments having six (6) or more of purchase. Such items include but are not limited to (504) 565-664-6 or emailed to: at the time of purchase, Such items include but are not sleeping rooms. limited to food and non-alcoholic beverages. candies, fruit, coffee, cookies, beverages, meals fiwebmrv©new-orleans.la.us. and gifts. BED AND BREAKFAST PERMIT HOTEL OCCUPANCY PRIVILEGE TAX ‘BARTERING: Instances where the room rental is D EF N ff10N ______provided at no charge in exchange for any form of An annual bed and breakfast permit is required by any consideration, the transaction is subject to the four (4) BED AND BREAKFAST The hotel occupancy privilege tax is charged to guests percent City sales tax based on thevalue of the consid- bed and breakfast establishment having less than six for the right to occupy sleeping rooms. This tax is in A bed and breakfast establishment is an owner- (6) sleeping rooms. eration. The transation is also subject to the hotel occu- occupied residential structure which provides sleeping addition to sales tax and only applies to an establish- pancy privilege tax. For example, exchanging free rooms for overnight paid occupancy of up to seven (7) ment having three (3) to nine (9) sleeping rooms each room rental for free advertisement. nights. Common bathroom facilities may be provided having a private bath or shower. rather than private baths for each room. Proof of ‘PACKAGE DEALS: Package deals that include the The applicable tax rate is determined by the room owner-occupancy shall be established by submission of room rental are subject to the four (4) percent City sales proof of a homestead exemption /~orthe premises or capacity of the establishment, in accordance with the following schedule: tax based on the amount paid for the room. The similar proof of owner-occupancy and a copy of the act rt~rr’ir package deals are also subject to the hotel occupancy of sale. privilege tax. Such packages include but are not SALES TAX limited to honeymoon deals, vacation deals and festival deals. 1to2roor~T~f’~ Notax TYPES OF BED AND BREAKFAST The furnishing of sleeping rooms by bed and breakfast 2 to 9 rooms $0.50/room ‘GUARANTEED NO SHOWS: When a guest pays for ESTABLISHMENTS. . establishments having six (6) or more sleeping rooms is a taxable service. The applicable sales tax rate for the room rental in advance and the room is guaranteed such service is four (4) percent. If an establishment Once the tax rate is determined, this rate should then to the guest, the amount paid for the room is subject to BED AND BREAKFAST FAMILY HOME the four (4) percent City sales tax and the hotel A bed and breakfast family home is any establishment contains less than six (6) sleeping rooms, the sales tax be charged to persons occupying each room, per 24- does not apply. occupancy privilege tax regardless of whether or not having no more than two (2) sleeping rooms. hour period. the guest occupies the room. BED AND BREAKFAST GUEST HOME In the event the bed and breakfast establishment sells continental breakfast and non-alcoholic beverages to ‘ROOM CANCELLATION: In cases where a guest A bed and breakfast guest home is any establishment cancels a room rental and fees are charged in connec- having three (3) to five (5) sleeping rooms. the guests, the five (5) percent City sales tax must be collected and remitted. tion with the cancellation, thefees are not subject to the