Establishes a state sales and use tax rebate for purchases of materials used to elevate homesteads above the base flood elevation (RE DECREASE GF RV See Note)
The bill establishes a tax rebate framework that requires the parish permit office to ensure compliance with the elevation standards. Homeowners or contractors must file for a rebate application within six months of completing the elevation project, which mandates timely processing of rebates by the Department of Revenue. This new structure aims to alleviate some financial burdens associated with building regulations that require flood elevation, making it more accessible for residents to comply with necessary safety measures.
House Bill 556 authorizes a rebate of state sales and use taxes for materials and supplies used to elevate new homesteads at least one foot above the base flood elevation established by FEMA or local ordinances. The intent of this bill is to incentivize homeowners and contractors to invest in elevating residential structures, thereby improving their resilience against flooding events. It applies to materials purchased after July 1, 2019, and is designed to support post-disaster recovery efforts in areas prone to flooding.
The general sentiment surrounding HB 556 has been supportive, particularly from flood-prone communities where the need for structure elevation is critical. Many view the rebate as a positive step towards improving safety and resilience against the impact of flooding. However, there may be some concerns about the administrative burden on the parish permit offices and the Department of Revenue to handle the processing of rebate requests efficiently.
Some contention has arisen around the eligibility criteria for the rebate, specifically the exclusion of materials purchased with federal or state grant funds. Critics argue that this restriction may limit access to the rebate for certain homeowners who are already navigating financial challenges. Additionally, there may be discussions about the practicality of ensuring that all requisite certifications and elevations are accurately documented and processed, which could complicate rebate claims.