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Blanco seeking new New Orleans taxes for Saints deal


By The Associated Press

12 p.m.
Gov. Kathleen Blanco is backing new taxes on New Orleans hotels, rental cars and football tickets as a way of raising money to help meet the state's annual payments to the New Orleans Saints.

Two Blanco administration bills would create about $12 million in new annual revenue, drawn mainly from Saints fans and the tourism industry in Orleans and Jefferson parishes.

Andy Kopplin, Blanco's chief of staff, said the governor had hoped to raise the additional revenue to support a proposed long-term contract between the state and the Saints that included a state renovation of the Superdome.

But team owner Tom Benson has cut off talks toward a deal, leaving the state with its current obligation to the team.

"We'd rather come to the Legislature with these revenue sources for a long-term deal," Kopplin said. "Unfortunately, because Mr. Benson has yet to say yes, we have to come forward for the revenue to meet the existing contract."

The state has a 10-year, $186 million deal with the Saints that includes annual cash payments, free Superdome rent and concession sales revenue for the franchise. The Superdome commission, which is the conduit for the state's annual payments to the Saints, will fall as much as $10 million short on its $15 million payment due the Saints on July 5, officials said Sunday, predicting that shortfall will be $13 million a year later.

The governor is supporting a new 5 percent tax on auto rentals in Jefferson and Orleans parishes and an increase in the state's tax on hotel rooms in the two parishes from 4 percent to 5 percent.

The legislation also would permit a fee at the Superdome of as much as 10 percent for tickets to Saints games or any other NFL event. Up to 10 percent could be charged for food, drinks, catering and merchandise sold in the Superdome for any event. The Superdome commission would set the sports fee amounts.

The bills are scheduled for a House committee hearing Wednesday.

The local hotel industry has in principle gone along with the idea of a higher room tax if the state enters a long-term deal with the Saints, but hotel officials have not favored the proposal to meet the current Saints contract. The overall room tax currently is about 13 percent.

In addition, some New Orleans lawmakers want to use at least part of a new hotel tax to finance other local projects, such as crime prevention and medical research.

Meanwhile, the Superdome's financial woes do not end with the Saints. The facility has an estimated backlog of maintenance and renovation costs of more than $4 million.


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