New Orleans may raise hotel and motel tax

The New Orleans hotel and motel tax may increase by a percentage point if a local civil court agrees to the proposed settlement of a lawsuit challenging the tax.

The lawsuit was filed by the New Orleans Hotel & Motel Association, other nonmember hotels and the New Orleans Convention and Visitors Bureau.

The tax originally was to be used by the Regional Transit Authority for expansion of the local streetcar system.

Under the proposed settlement, the RTA, the New Orleans Tourism Marketing Corp. and the Morial Convention Center would share the revenue. If the settlement goes through, the new tax will be added to the 11% in-room taxes now imposed, bringing the total to 12%.

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