Denham Springs may levy a hotel occupancy tax, but the rate cannot exceed 6.75% and the tax must be imposed by ordinance after voter approval.
§338.225. City of Denham Springs; hotel occupancy tax; authorization A.(1) In addition to any other tax levied and collected, the governing authority of the city of Denham Springs may levy and collect a tax upon the paid occupancy of hotel rooms located within the city. The hotel occupancy tax shall not exceed six and three-fourths percent of the rent or fee charged for such occupancy. (2) For purposes of this Section, the term "hotel" shall have the same meaning as provided for in R.S. 47:301(6). (3) The person who exercises or is entitled to occupancy of the hotel room shall pay the hotel occupancy tax at the time the rent or fee for occupancy is paid. "Person" as used in this Paragraph shall have the same definition as that contained in R.S. 47:301. B. The governing authority shall impose the tax by ordinance. However, the ordinance imposing the tax shall be adopted by the governing authority only after a proposition authorizing the levy of the tax has been approved by a majority of the electors of the city voting at an election held for that purpose in accordance with the Louisiana Election Code and held on a date that corresponds with an election date provided by R.S. 18:402(A)(1) or (B)(1). The governing authority may provide in the ordinance necessary and appropriate rules and regulations for the imposition, collection, and enforcement of the hotel occupancy tax. C. The governing authority may enter into a contract with any public entity authorized to collect sales or use taxes, under such terms and conditions as it may deem appropriate including payment of a reasonable collection fee, for the collection of the hotel occupancy tax authorized by this Section. The hotel occupancy tax shall be in addition to all taxes levied upon the occupancy of hotel rooms located within the city. D. Except as provided in Subsection C of this Section, for the purpose of promoting visitation and tourism within the city by enhancing public safety, the governing authority shall use fifty percent of the proceeds from the tax to fund salaries and benefits for employees of the fire department and fifty percent of the proceeds from the tax to fund salaries and benefits for employees of the police department. E. Any expenditures made pursuant to this Section shall be used in excess of the normal expenditures that the city already provides for in its budget. Acts 2023, No. 248, §1, eff. June 9, 2023.