DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 556 Reengrossed 2019 Regular Session Hodges
Abstract: Authorizes a rebate of state sales and use taxes paid on materials and supplies used to
elevate new homesteads at least one foot above the base flood elevation requirement as
established by the Federal Emergency Management Agency (FEMA) or local ordinances.
Proposed law authorizes a rebate of state sales and use taxes paid by a homeowner or contractor on
behalf of a homeowner for the purchase of materials and supplies purchased on or after July 1, 2019,
used to elevate new homesteads. The structure elevation must be at least one foot above the FEMA
or local ordinance requirements to be eligible for the rebate.
Proposed law defines "base flood elevation" as the regulatory requirement for the elevation or
floodproofing of structures.
Proposed law defines "elevation certificate" as a certificate completed by a state licensed
professional land surveyor, professional engineer, or registered architect that verifies the elevation
data of a structure on a property relative to the ground level.
Proposed law defines "materials and supplies" as tangible personal property such as fill materials,
including dirt and concrete, extension materials for foundation walls, wire mesh for reinforcement,
bricks, concrete blocks, piers, posts, and columns. Proposed law further defines "materials and
supplies" to include methods used to elevate or extend foundation walls, elevate on slab-on-grade
foundations, elevate by abandoning the lower enclosed area, and elevate on an open foundation.
Proposed law defines "structure elevation" as purchases of materials and supplies necessary to
physically raise a new homestead to the base flood elevation or higher. However, structure elevation
shall not include purchases of materials and supplies acquired with funds from federal or state grants
or proceeds from federal programs.
Proposed law requires the parish permit office to ensure the structure elevation is at least one foot
above the base flood elevation and certify and file the elevation certificate. However, if the parish
permit office does not have the capability to certify the structure's elevation then a licensed
professional land surveyor may provide the certification.
Proposed law requires that application for the payment of the rebate be filed no later than six months
after the completion of the project. Further, proposed law requires that within 60 days of receiving
the rebate request that the Dept. of Revenue rebate 80% of the amount claimed in the request. After
six months, the Dept. of Revenue shall rebate the remaining 20% of eligible state sales tax. Proposed law authorizes the Dept. of Revenue to promulgate rules and regulations to implement the
provisions of proposed law.
Effective July 1, 2019.
(Adds R.S. 47:305.72)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Clarify that the rebate applies to new homes.
2. Define "materials and supplies" for purposes of the rebate established in proposed law.
3. Allow a licensed land surveyor to provide certification of the structure's elevation in
parishes where the parish permit board does not have the capability to issue the
certificate.
4. Clarify that qualifying purchases of materials and supplies must be made on or after July
1, 2019, and are applicable to purchases for new homes.
5. Excludes materials and supplies purchased with state or federal grant funds from being
eligible for the rebate.
The House Floor Amendments to the engrossed bill:
1. Change that the purchaser shall submit the elevation certificate to the parish permit office
instead of parish permit board.
2. Clarify the National Flood Insurance Program's Increased Cost of Compliance is an
insurance coverage instead of a program.