INTERIM. Sharing Economy. Private Property Rights Meets Sales Tax.

This week Louisiana passed a sales tax expansion to apply a 4% sales tax on short term rentals.

What you need to know about the short term rental sales tax:

• Louisiana could not estimate how much the tax would generate because:
  • The number of short term rentals is unknown
  • The revenue generated from short term rentals is also unknown
• The sales tax passed because of a historic $900 M shortfall
• How did they do it? Expanded the definition of hotel/motel

NOLA.com | Times Picayune | Legislature passes new Airbnb sales tax; bill heads to governor