Exempts the sale of construction materials to the Make It Right Foundation from state and local sales tax when such materials are intended for use in constructing new residential dwellings in this state. (7/1/12) (EN -$112,000 GF RV See Note)
Impact
If enacted, SB254 would modify state and local tax authorities' regulations regarding sales and use tax exemptions related to charitable construction efforts. Specifically, it seeks to alleviate the financial burdens faced by charitable organizations when sourcing materials necessary for homebuilding. By exempting these materials from taxation, the bill encourages and supports nonprofit organizations that focus on providing affordable housing solutions to underserved populations within the state. The lack of sales tax on such materials directly aids in the overall affordability of housing projects spearheaded by these nonprofits.
Summary
Senate Bill 254, sponsored by Senator Willard-Lewis, aims to amend the existing sales and use tax laws in Louisiana by providing an exemption for certain charitable organizations involved in residential construction. Specifically, the bill exempts construction materials sold to organizations such as Habitat for Humanity, Fuller Center for Housing, and the Make It Right Foundation from being taxed when these materials are intended for constructing new residential homes in Louisiana. This initiative is intended to lower costs for these charity-driven projects, ultimately facilitating more affordable housing options for residents in need.
Sentiment
The overall sentiment surrounding SB254 appears to be positive, particularly among proponents of affordable housing initiatives and nonprofit organizations. Supporters argue that this measure is a meaningful step towards improving access to safe and affordable housing for individuals and families who might otherwise struggle with the costs associated with home construction. The sentiment among nonprofit organizations is that the exemption symbolizes legislative support for community development and humanitarian efforts in the state. Conversely, while there may not have been significant vocal opposition, concerns regarding the long-term sustainability and implications of such tax exemptions could arise from broader fiscal discussions.
Contention
Discussion surrounding the bill notably involves the balance between supporting worthwhile charitable causes and ensuring that tax exemptions do not lead to unintended consequences on state revenues. There could be contention around the idea of potential abuses of the exemption by organizations not solely focused on charitable objectives, or how such exemptions could impact the overall funding of state services that rely on sales tax revenues. However, the unanimous support for the bill during the voting process indicates a consensus on the importance of fostering charitable endeavors in housing construction.
Reinstates the state sales tax exemption on sales of construction materials to Habitat for Humanity affiliates and for construction of new animal shelters. (7/1/21) (EN DECREASE GF RV See Note)
Creates an exemption from sales and use tax for construction materials purchased by the Committee for Plaquemines Recovery (OR -$12,000 GF RV See Note)
Creates an exemption from sales and use tax for construction materials purchased by the Committee for Plaquemines Recovery (RE DECREASE GF RV See Note)
Establishes a state sales and use tax rebate for the purchase of construction materials by certain charitable organizations (OR -$1,000,000 GF RV See Note)