New Orleans bans all exceptions to short-term rental rules

The New Orleans City Council has approved a measure removing any exceptions to its short-term rental (STR) rules. City regulations require all STR operators to have a city-issued permit and limit STRs to one property owner per city square. In cases where the number of permit applicants exceed the density limits, the rules call for a lottery to determine which owners are eligible for a permit.

Prior to the latest change, the law allowed up to two more STR permits per city square to be issued to operators who applied for a special exemption. This required neighbor notification and comment as well as City Council approval. All but one application for exceptions were granted, even though the City Planning Commission recommended against many of those applications.

The council placed a year-long moratorium on such exceptions in late 2024 amid controversy on how they’ve been administered. Now, no exceptions will be granted at all.

Short-term rentals have long been controversial in New Orleans. Its current STR law went into effect in March 2024, a year after it was passed, after a federal judge ruled the ordinance constitutional amid legal challenges. 

Other provisions of the ordinance include:

• Each operator can have only one STR permit.
• Permits are limited to “natural persons.” Corporate entities aren’t eligible.
• Operators must live on the same lot as the STR unit.
• STRs aren’t allowed to operate in the French Quarter and certain sections of the Historic Garden District.

The city also passed a law in October 2024 requiring STR platforms such as Airbnb and Vrbo to make sure their listings in New Orleans have city-issued STR permits. Under the law, which is set to go into effect in June 2025, STR platforms need to verify a listing has a permit before booking can take place.

However, Airbnb and local STR owners have recently sued New Orleans over the city’s STR regulations — the third such lawsuit since 2016.

New Orleans STRs are subject to lodging taxes that include Louisiana state sales tax and several city taxes, including sales tax, a short-term rental occupancy fee, occupancy privilege tax, and a short-term rental equalization occupancy tax. STR operators in New Orleans are required to register and file lodging tax returns with city and state tax authorities.

Airbnb collects both city and state taxes on behalf of its New Orleans hosts. Vrbo also collects city taxes for hosts in New Orleans but doesn’t collect Louisiana state taxes. Hosts must still register and file lodging tax returns with state tax authorities even if taxes are being collected on their behalf by a marketplace.

Avalara MyLodgeTax can help short-term rental hosts in New Orleans simplify and automate lodging tax compliance. See our Louisiana vacation rental tax guide for more on short-term rental taxes in the state. If you have tax questions related to properties in New Orleans, drop us a line and we’ll get back to you with answers.