Louisiana House Bill HB35

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 6/2/11
• Engrossed: 6/8/11
• Report Pass: 6/21/11
• Enrolled: 6/23/11
• Chaptered: 7/1/11
• Passed: 7/1/11

Caption

Provides for a sales and use tax exemption for sales of certain property to the "Make It Right Foundation" (EN -$112,000 GF RV See Note)

Impact

The successful passage of HB 35 would amend state tax laws to include provisions that allow for exemptions specifically aimed at nonprofit organizations like the Make It Right Foundation. This could set a precedent for future tax exemptions for other nonprofit entities, potentially fostering a more favorable environment for charitable organizations. By easing financial constraints for these organizations, the bill may encourage greater philanthropic efforts and community involvement.

Summary

House Bill 35 aims to provide a sales and use tax exemption for specific sales to the Make It Right Foundation. This provision is designed to assist the foundation’s efforts to contribute to the community by reducing the financial burden associated with purchases necessary for its operations. By exempting such purchases from sales tax, the bill seeks to support the foundation's mission and enhance its ability to provide services and assistance where it is needed the most.

Sentiment

The sentiment surrounding HB 35 appears to lean positively among supporters who see it as a beneficial step towards empowering nonprofit organizations. Advocates argue that tax exemptions for charitable organizations can lead to increased funding for community projects, overall economic benefits, and enhanced social welfare. However, there may be some concerns from fiscal conservatives regarding the implications of lost tax revenue, though the extent of this concern was not extensively detailed in the discussions around the bill.

Contention

While there seems to be general support for HB 35, there are notable points of contention regarding the implications of such tax exemptions on state revenue. Critics may raise concerns about the long-term effects of allowing these exemptions, questioning if they could lead to requests for similar treatments from other organizations. This could potentially complicate tax code further and result in a loss of funds needed for state services. The discussions suggest a need for careful consideration of the balance between supporting nonprofits and maintaining state revenue.