New Orleans – Tax Deal Finalized

Rail Transit Online, July 2000

The Regional Transit Authority should finally be able to start collecting a one-cent sales tax on hotel and motel rooms in August now that a District Court judge has accepted the terms of a settlement between the agency and the city's hospitality industry. Part of the proceeds will provide the local share of the $156.6 million needed to restore streetcars on Canal Street, with the rest being used to promote tourism and expand the convention cente. The deal will also meet the FTA’s June 30 deadline for finalizing the local funding source, allowing the release of more than $100 million in federal cash. The RTA is also seeking a line of credit from the state that will be paid back from the tax so the project can get started.