The City of New Orleans Department of Finance recently announced that it is offering a Sales Tax Amnesty Program for businesses to pay overdue sales tax. All penalties, negligence fees, and 50% of the interest charged on delinquent balances will be waived during the amnesty period. Amnesty ends December 31, 2026.
The City’s website states that amnesty may be available for outstanding:
- Sales taxes
- Use taxes
- Hotel/motel taxes
- Parking taxes
- Alcoholic beverage gallonage taxes
- Occupational license taxes; and
- Various permits.
Property taxes do not qualify for the City’s Amnesty Program.
In order to participate in the Amnesty Program, taxpayers must complete and submit the Amnesty Application, provide gross sales information for the months under consideration and be prepared to pay all delinquent amounts that qualify under the amnesty period.
The City’s website provides that Taxpayers may be given the opportunity to make payments through an installment agreement. The Amnesty installment terms include making a 50% down payment on the balance due and six (6) equal remaining payments. All amnesty installment agreements must be paid in full by December 31, 2026, though. If the amnesty settlement is not paid, penalties and interest will be restored to the original liability amount.
According to the Department of Finance’s website, the program may be available to taxpayers who:
- Failed to file a tax return and pay the tax due.
- Failed to register or file sales or another type of tax, license, or permit.
- Are currently under an installment agreement or have defaulted on an installment agreement.
- Underpaid tax or have an outstanding sales tax balance.
- Failed to pay for or renew an Occupational License permit.
- Are currently 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 City of New Orleans requires certified funds for payment, including cashier’s checks or money orders. In addition, credit card payments will also accepted for applications submitted online and in person.
In light of the expansion of the sales tax base in Louisiana after the enactment of historic tax reform in 2024, taxpayers doing business in or who have nexus with the City of New Orleans are advised to conduct self-audits to determine whether they have exposure for delinquent sales and use taxes that might be settled through the Amnesty Sales Tax Program.
For more information about this update, contact Liskow attorneys Bob Angelico, Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.