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