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City of New Orleans Reminds Business Owners of Quarter for the Quarter Sales Tax Collection to Start October 1st

NEW ORLEANS — Today, the City of New Orleans reminds all business owners in the French Quarter bounded by the Canal Street neutral ground, Esplanade Ave., the Mississippi River, and the lakeside of N. Rampart Street of the “Quarter for the Quarter” sales tax collection set to begin next month. Business owners can expect to see the reinstated, additional sales tax on their bills beginning Oct. 1, 2021, as required until June 2026.

The reinstatement of a 0.245 percent special sales tax levied in the French Quarter was approved by voters on the April 2021 special election ballot to authorize the funding of additional POST-certified officer patrols and other public safety programs in the area. The tax collection was originally set to take effect July 1, but was delayed due to a dispute over whether hotel and motel room sales within the district would continue to be exempt from the levied tax. The agreement was to tax other sales at hotels such as bars and restaurants, and not room rentals.

On Aug. 16, the French Quarter Economic Development District (FQEDD), composed of the New Orleans City Council, voted to levy the tax beginning Oct. 1, 2021, excluding the rental of hotel and motel room sales. All other goods and services to include: retail sales; the use, lease or rental of property; consumption and storage for use or the consumption of tangible personal property within the district are subject to the tax; and businesses are required to collect the tax.

The FQEDD previously began levying a special sales tax in 2015, which expired in December 2020. The funds were exclusively used to pay for additional patrols in quarter by the Louisiana State Police. Hotel rooms sales were exempt, but not as a part of the 2015 ballot. This exemption was implemented through a FQEDD resolution in 2016.

For more information on the FQEDD sales tax call the City of New Orleans Finance Department/Bureau of Revenue Tax at (504) 658-1692.