Louisiana lawmakers refine short-term rental tax with new amendments

The Senate Local and Municipal Affairs Committee convened on May 29, 2025, to discuss several key legislative measures, primarily focusing on modifications to short-term rental regulations and economic development initiatives.

The meeting opened with a discussion on House Bill 610, introduced by Representative Hillforty. This bill aims to enhance transparency in the short-term rental market by modifying the tax structure and requiring clearer breakdowns of fees on platforms like Airbnb and VRBO. Currently, these platforms present a single fee to users, lacking detailed itemization similar to traditional hotels. An amendment to the bill, proposed by Senator Miller, was adopted, stipulating that fees cannot be charged for rentals that do not comply with local ordinances.

Another amendment, presented by Senator Bass, sought to revert a proposed tax increase from 7.75% back to the original rate of 6.75%. This amendment was also approved, ensuring no additional tax burden on renters.

Walt Leger, President and CEO of New Orleans and Company, expressed support for the bill, emphasizing the importance of transparency in the rental market. The committee moved to report the bill favorably with the adopted amendments.

In addition to the rental legislation, the committee reviewed House Bill 97, which establishes an economic development district in an area designated for arts and culture. This initiative aims to revitalize the Railroad Avenue Historic Cultural Economic District, with local support confirmed.

House Bill 107 was also discussed, focusing on economic development in a blighted area of Saint Martin, where improvements to sewage and water infrastructure are planned. Both bills were reported favorably without opposition.

Lastly, the committee addressed Senate Resolution 122, which requests the Louisiana Department of Health to propose solutions to the ongoing nursing shortage. The resolution was temporarily set aside for further clarification.

Overall, the meeting highlighted significant legislative efforts aimed at improving local economies and enhancing regulatory clarity in the short-term rental market, reflecting the committee's commitment to addressing pressing community needs.