The proposed fee, capped at $45,000 per parade, would help close a $4 million gap between Carnival costs and city revenue.
Carnival krewes could pay more to roll as the New Orleans City Council considers a tax of more than $800 for each parade float or truck.
The proposed $850 fee was outlined in an ordinance on the council’s agenda Thursday and is aimed at closing a $4 million gap between the city’s costs to host Carnival parades each year and the revenue the city collects from the events. With the fee, each parade would be capped at $45,000, according to NOLA.com.
The council did not discuss the proposed parade tax during Thursday’s meeting.
The proposal comes at the request of Mayor Helena Moreno. Council member Freddie King III introduced the parade float tax, called the Carnival Gap Adjustment for Parades Fee, or GAP Fee. The funds would be used solely to cover the costs of rolling parades, including public safety, traffic control, barricade operations, emergency preparedness, route management and other services that go into running parades in the city.
Though Carnival is known to bring in big bucks for the city and boost the economy, not all of that money flows to City Hall. Thousands of visitors who travel to the Big Easy spend money on hotels, dining and more, helping bring in cash for New Orleans.
However, Moreno’s administration pointed to a study by Tulane University professors that found the revenue brought in is split among agencies such as the Regional Transit Authority and Orleans Parish School Board, leaving City Hall with hefty bills at the end of the season.
The ordinance states krewes would be required to pay the GAP Fee by April 30 each year based on the number of “pull units, truck floats, and rider-carrying minifloats” in the parade that year. If a krewe fails to pay, the city may withhold future parade permits and the tax could apply to 2027 parades under the ordinance, NOLA.com reports.
Back in May, city leaders considered imposing a fee of $20 to $25 per rider. The new proposal replaces that fee. The GAP Fee would not fully offset the city’s Carnival costs.
New Orleans hosts 33 official parades starting the second Friday before Fat Tuesday. If each paid the maximum fee, the GAP Fee would generate nearly $1.5 million.
The tax is still being discussed; a vote is planned for Sept. 6.
