New Orleans, LA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- 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)
Summary
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.
In order to calculate the license fee for a business location at which business activities are carried on that fall under more than one tax basis schedule, gross receipts, fees, or commissions for each group of activities falling under each schedule must be compared. The rate for the schedule which constitutes the major portion of the gross receipts, fees, or commissions will be used. However, the total gross receipts, fees, or commissions for all business activities carried on at the business location, minus any applicable deductions, are applied to the schedule to compute the fee.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 116 Update 1).
Full Breakdown
Sec. 150-956 sets the method for a business location that carries on activities falling under more than one occupational license tax basis schedule: the department compares the gross receipts, fees, or commissions attributable to each group of activities, identifies which schedule covers the major portion of that revenue, and then applies that schedule's rate to the location's total gross receipts, fees, or commissions, not just the portion tied to the dominant activity. 00 of combined receipts under the retail schedule, because retail is the majority activity.
Classification interacts closely with Sec. 150-955, which requires only one license per place of business based on its primary class, except that hotels, motels, roominghouses, and boardinghouses must obtain a separate license in addition to any license covering other business lines operated on the same premises, such as an attached restaurant or lounge, unless that restaurant or lounge shares the same classification and ownership. A 'separate location' for licensing purposes turns on common ownership, operation as a unit, and being under a single roof or on the same contiguous tract, per the Sec. 150-955 regulation. S. Ordinance No. 29188 in 2022 and Ordinance No. 19,937 in 2000.
Violations & Fines
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.
Frequently Asked Questions
How does New Orleans classify a business with more than one line of activity?
Does a hotel with an on-site restaurant need two licenses?
What counts as a 'separate location' for license purposes?
Sources & Official References
Other rules in New Orleans
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