Businesses that have failed to pay proper sales taxes to the city of New Orleans can get caught up with fewer penalties starting next month, before collectors step up enforcement.
The Moreno administration made the announcement today.
"The City of New Orleans is launching a limited-time Sales Tax Amnesty Program, giving eligible businesses and taxpayers an opportunity to resolve delinquent tax obligations while receiving significant savings on penalties and interest," according to a news release.
The announcement says after the three-month program is over, there will be a crackdown.
"After the program ends, the Bureau of Revenue will resume enhanced efforts to identify non-filers and collect delinquent taxes. "
The amnesty starts October 1st.
"Eligible taxpayers can receive a 100% waiver of penalties and negligence fees and a 50% reduction in interest on qualifying delinquent tax balances. The program applies to eligible outstanding sales and use taxes, hotel/motel taxes, parking taxes, alcoholic beverage gallonage taxes, occupational license taxes and certain permits."
The program is available to taxpayers with qualifying delinquent obligations, including those who:
- Failed to file a tax return and pay the tax due
- Failed to register and/or file sales or any other type of tax, license, or permit
- Currently under an installment agreement or have defaulted on agreement
- Underpaid tax or have any outstanding sales tax balance
- Have failed to pay for or renew an Occupational License permit
- Under audit or in litigation for sales tax matters
- Misrepresented or omitted tax due
- Have sales tax liens on personal or business property
- Claimed incorrect credits or deductions on tax returns
The program does not apply to property taxes.
“We are giving businesses a limited-time opportunity to resolve outstanding tax obligations while reducing the financial burden of penalties and interest,” said Mayor Helena Moreno. “These revenues are critical to providing the services and investments New Orleanians rely on every day.”
She points out that sales tax revenue makes up about 40% of the city’s general fund.
The mayor says recovering unpaid taxes will help strengthen the city’s ability to fund priorities including NOPD, NOFD, infrastructure, recreation, sanitation and other services.
“Applications can be completed in person or online at salestax.nola.gov. Applicants who file using the City's E-Services Sales Tax payment platform can also access amnesty utilizing the online service. the online service.”
The sales tax amnesty program ends Dec. 31, 2026.
