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B&Bs Get Break on Room Tax Penalties

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 Times-Picayune reports that 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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