How New Orleans Handles Local Taxes & Fees: A Practical Guide
New Orleans maintains 139 local ordinances across all categories, and 2 of those deal specifically with local taxes & fees. Here is a breakdown of what the city actually requires, what is prohibited, and where New Orleans falls on the strict-to-permissive spectrum compared to other cities.
Business Tax Classification
New Orleans calculates each occupational license tax bill by classifying a business under the schedule that matches the majority of its gross receipts, then applying that single schedule's rate to all of the location's combined receipts. Sec. 150-956 governs this classification when one location runs activities that span more than one tax basis schedule.
Key details: Governing section: Sec. 150-956, Class of business. Classification test: Schedule of majority gross receipts controls. Applies to: All combined receipts, not just majority activity. Related rule: Sec. 150-955 separate license for hotels/motels. Delinquency: Interest/penalties run from March 1 (Sec. 150-952).
Getting the classification wrong understates the license fee owed, which the Department of Finance can pursue as a delinquent tax: Sec. 150-952 makes the annual occupational license tax due January 1 and delinquent March 1, with interest and penalties running from that date until paid. Operating a hotel, motel, roominghouse, or boardinghouse without the separate license Sec. 150-955 requires, beyond any license for other business lines on-site, is a separate compliance failure.
Parking Tax
New Orleans taxes the right to park, store, or berth a vehicle or watercraft on someone else's property at three percent of the price paid, under Sec. 150-1191. The owner or manager of the lot collects the tax and remits it to the Department of Finance; a minimum of one cent applies to every parking transaction.
Key details: Tax rate: 3% of price paid to park/store/berth. Minimum tax: $0.01 per occasion, even if free. Who collects: Lot or dock owner/manager. Remit to: Department of Finance. Key exemptions: Churches, schools, charities, free employee parking.
Sec. 150-1198 makes it a misdemeanor to 'collect anything of value or advertise... in the guise of a parking tax a sum in excess of the parking tax due.' Sec. 150-1197 permits are revocable for failing to collect and remit the tax on time or after a civil judgment for violating the article. Sec. 150-1201 authorizes the Department of Finance or Department of Law to seek a court injunction shutting down a delinquent operator's parking business until back taxes, penalties, interest, attorney's fees, and costs are paid, with violation of that injunction punishable as contempt of court.
The Bottom Line
New Orleans's local taxes & fees rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming New Orleans is broadly strict or permissive.
This guide is based on New Orleans's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.