(Photo: Eric T. Styles)
A new sales tax approved by voters in April won’t go into effect on Thursday, because it has yet to be levied by the French Quarter Economic Development District.
Collection for the .245% sales tax, known as the “quarter for the Quarter” tax, was set to take effect on July 1, but won’t be collected until it is officially levied with official resolution by the French Quarter Economic Development District, according to LaTonya Norton, a New Orleans city spokeswoman.
French Quarter voters approved the tax in a special election on April 24 and is intended to fund public safety services in the district, including additional New Orleans Police patrols.
“The French Quarter Economic Development District (which is made up of the City Council with District C Councilmember Palmer as the authorized representative) has yet to put forth or pass a resolution to levy the tax,” said Norton in a statement issued Wednesday. “As a result, the city does not have legal authority to collect it and businesses within the French Quarter should not begin collecting the tax from their customers until the FQEDD has officially levied the tax.”
The city will notify business owners when to begin collecting the tax after it’s levied by the FQEDD, Norton added.