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Dec 26, 2012 5:15 AM by AP

B&Bs get a break on room tax penalties

NEW ORLEANS (AP) - The New Orleans City Council is giving a break to bed-and-breakfast owners who are late paying the room tax rate of 50 cents per day for each occupied room.

The penalty has often been much more than the amount due.

The late penalty was at least $500. Council President Stacey Head told the council that the tax for a typical B&B averages less than $60 a month.

The council voted 7-0 to eliminate the $500 minimum for establishments with up to nine guest rooms - the legal limit for B&Bs.

The alternative penalty is 20 percent of the amount due, plus interest.

The $500 minimum will remain in effect for hotels or motels with 10 or more rooms.

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