Louisiana New Sales Tax Law: What Accommodation Intermediaries Need to Know

Louisiana New Sales Tax Law: What Accommodation Intermediaries Need to Know

The landscape of sales and use tax is continually evolving, and Louisiana has recently enacted significant changes that will impact businesses facilitating accommodations. On June 4, 2025, Governor Jeff Landry signed Act 82 (also known as HB374) into law, broadening the definition of a "marketplace facilitator" to include "accommodation intermediaries." This move aims to ensure a more equitable collection of sales and use taxes across various lodging services.

Understanding the Key Changes

Previously, the focus for sales tax collection often lay directly with the accommodation providers themselves. However, with the rise of online platforms and booking services, the state of Louisiana has recognized the need to adapt its tax regulations.

Broadening the Definition of Marketplace Facilitator

The core of Act 82 is the expansion of the "marketplace facilitator" definition. This now explicitly includes entities that facilitate the rental of accommodations, even if they don't own or directly manage the properties. This means that platforms connecting guests with lodging will now have a direct responsibility for sales and use tax collection and remittance.

Defining "Accommodation Intermediaries"

The new law provides a clear definition of what constitutes an "accommodation intermediary." Generally, this refers to any person or entity, other than the actual owner, operator, or manager of a sleeping room, cottage, cabin, room, suite, condominium, townhouse, rental house, or other similar accommodation, who facilitates the furnishing of such an accommodation to a transient guest through a marketplace they own, operate, or control. This effectively brings many online travel agencies (OTAs) and short-term rental platforms under the purview of Louisiana's sales tax laws.

Exemptions to the Rule

It is important to note that the bill also outlines specific exemptions. For instance, shared hotel brands operating under a formal franchise or management agreement are generally exempt from being considered marketplace facilitators under this act. This distinction is crucial for large hotel chains and their franchisees.

Effective Dates to Remember

Businesses operating as accommodation intermediaries in Louisiana need to be aware of two key effective dates:

• July 1, 2025: This is the effective date for the requirement to collect and remit state and local sales and use taxes on facilitated accommodations.
• January 1, 2026: Beginning on this date, accommodation intermediaries will also be required to collect and remit hotel and motel occupancy taxes due for the rental of sleeping rooms, cottages, or cabins provided by hotels and motels.

What This Means for Your Business

If your business operates as an accommodation intermediary in Louisiana, these changes will significantly impact your tax obligations. It is crucial to:

1. Assess your current operations: Determine if your business falls under the new definition of an "accommodation intermediary."
2. Understand your responsibilities: Familiarize yourself with the requirements for collecting and remitting both sales/use tax and, later, occupancy tax.
3. Update your systems: Ensure your accounting and booking systems are equipped to handle these new tax collection and remittance duties by the respective effective dates.
4. Seek professional guidance: If you have any uncertainties, consulting with a tax professional experienced in Louisiana sales and use tax is highly recommended to ensure full compliance and avoid potential penalties.

Louisiana Act 82 represents a significant step in modernizing its sales tax framework for the digital age. Staying informed and prepared is key for all affected businesses to navigate these new regulations successfully.

 

Link: https://www.legis.la.gov/legis/ViewDocument.aspx?d=1422296

 

Stay connect with SGM to ensure compliance with these new regulations.

 

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