What changes did Louisiana make to its sales tax rules?

Louisiana expanded its sales and use tax rules to include accommodation intermediaries, such as Airbnb, under the definition of marketplace facilitators. These platforms must now collect and remit sales tax if they meet the $100,000 threshold or have a physical presence in the state.

Who qualifies as an accommodation intermediary under the new law?

An accommodation intermediary is a person or business that facilitates the rental of accommodations to transient guests through a marketplace they control but does not own or manage the actual properties like hotel rooms or vacation homes.

When do the new sales tax requirements take effect?

Accommodation intermediaries must begin collecting and remitting Louisiana sales and use tax starting July 1, 2025, if they meet the state’s economic or physical presence threshold.

What is the tax threshold for accommodation intermediaries in Louisiana?

The sales tax threshold is set at $100,000 in sales. If an accommodation intermediary meets or exceeds this threshold or has a physical presence in Louisiana, they must comply with the tax rules.

Are any accommodation providers exempt from the new rules?

Yes, shared hotel brands operating under a franchise or formal management agreement are exempt. These brands are not considered marketplace facilitators and are not required to collect or remit sales tax.

What additional tax must be remitted starting January 1, 2026?

Beginning January 1, 2026, accommodation intermediaries must also collect and remit hotel and motel occupancy taxes for rentals they facilitate, under the same rules as sales and use tax.

Louisiana Expands Sales Tax Rules for Airbnb & Others

The Governor of the State of Louisiana signed a Bill concerning the collection and remittance of sales and use tax, which broadens the definition of the marketplace facilitator to include accommodation intermediaries. In addition to broadening the definition, the Bill also defines what the accommodation intermediaries are and explains which accommodation providers are exempt from the definition.

New Requirements for Accommodation Intermediaries

Under the Bill, accommodation intermediaries are persons who facilitate the rental of an accommodation to a transient guest through a marketplace owned, operated, or otherwise controlled by that person. Notably, the accommodation intermediary does not own, operate, or manage accommodations such as sleeping rooms, cottages, cabins, rooms, suites, condominiums, townhouses, rental houses, or other similar accommodations.

As stated, accommodation intermediaries are considered marketplace facilitators for sales and use tax purposes. Therefore, effective July 1, 2025, accommodations intermediaries, such as Airbnb, must collect and remit sales tax on sales they facilitate once they exceed the sales tax threshold set at USD 100,000 or if they have a physical presence in the state.

The Bill provides an exemption from this obligation for a shared hotel brand. Specifically, it clarifies that a shared hotel brand is a trademark under which hotels are operated based on a formal franchise or management agreement. This means that hotel brands that license their name and standards to individual hotel owners or managers are not held responsible for collecting and remitting taxes as marketplace facilitators.

In addition to collecting and remitting sales and use tax in Louisiana, starting January 1, 2026, accommodation intermediaries will be required to remit hotel and motel occupancy taxes due for the rental of sleeping rooms, cottages, or cabins provided by hotels and motels. They must be remitted to the Commission under the same rules, administrative procedures, and legal rights that apply to sales and use taxes.

Conclusion

After expanding the list of services subject to sales and use tax at the beginning of 2025 to include the rental and furnishing of accommodations by accommodation intermediaries, Louisiana updated the applicable rules once again, placing accommodation rental platforms under the scope of marketplace facilitator rules. Considering that July 1 is approaching, accommodation intermediaries should determine whether they are liable to register for, collect, and remit sales tax.

Source: PwC, VATabout