Are nonprofit homeless shelters exempt from sales tax on room rentals?

Sometimes. A qualifying nonprofit homeless shelter may be exempt from the collection of sales and use tax on room rentals if it meets the requirements of La. R.S. 47:305(E)(1).

To qualify, the organization must:

1. Be a nonprofit organization recognized as exempt under Section 501(c)(3) of the Internal Revenue Code;

2. Provide temporary lodging exclusively to homeless transient persons, with stays limited to no more than 30 days; and

3. Charge no more than $20 a day per person.

The organization must also annually submit Form R-1389, Homeless Shelter Certification, to maintain the exemption.

Questions regarding status of an application, renewal, or reissuance of the exemption certificate should be directed to [email protected]. All other questions should be directed to [email protected].