Louisiana has issued Revenue Ruling No. 04-004 on the taxability of charges by hotels.

It has been found that no-show charges for guaranteed rooms are taxable. A cancellation fee on a room reservation is generally not taxable if the charge is less than what the rate would have been if the taxpayer would have kept their reservation. Early cancellation fees are exempt for taxpayers who cut their stay short. Group cancellation charges are exempt. (Revenue Ruling No. 04-004, April 23, 2004.)

Posted on June 15, 2004