Exempts purchases of construction materials from state sales and use tax in parishes impacted by certain disasters. (gov sig) (Item #26)
Impact
The passage of SB 9 would modify existing Louisiana tax statutes to include a specific exemption for construction materials aimed at rebuilding post-disaster. This move aligns with federal disaster assistance programs, thereby facilitating quicker recovery efforts. By removing the sales tax on essential materials, the bill is poised to alleviate financial constraints for homeowners and contractors engaged in repair and reconstruction work. It signifies a recognition of the unique economic strain faced by these communities recovering from natural disasters.
Summary
Senate Bill 9, introduced by Senator Cathey, aims to provide a state sales tax exemption for purchases of construction materials in parishes significantly affected by disasters declared in 2020. The legislation is particularly focused on the recuperation of structures that were damaged during these disasters, allowing those affected to acquire necessary materials without the burden of state sales tax. The exemption period is set for November 1, 2020, through June 30, 2021, thus providing immediate fiscal relief to those involved in the reconstruction of devastated areas in Louisiana.
Sentiment
There appears to be significant support for SB 9 among state lawmakers, with proponents emphasizing its importance in aiding disaster recovery in affected parishes. The sentiment is generally positive, as many view the bill as a necessary step towards rebuilding efforts. However, apprehensions could arise regarding the adequacy of the exemption period, as some stakeholders may argue for a longer timeframe to extend support further into the recovery process, given the comprehensive damage from natural disasters.
Contention
While the bill is generally viewed favorably, points of contention might include discussions on the overall fiscal implications of the tax exemptions on state revenue. Opponents may raise concerns about whether such tax breaks could lead to significant budget shortfalls or if they adequately address the extensive needs and damages experienced by these communities. Furthermore, debates may emerge regarding the eligibility criteria for the parishes included in the exemption and the potential for differing interpretations of the disaster's effects.
Exempts purchases of certain farm equipment from the state sales and use tax during a declared state of emergency or disaster. (gov sig) (Item #26) (OR DECREASE GF RV See Note)
Exempts purchases of utilities by commercial farmers and agricultural manufacturers impacted by a declared state of emergency or disaster from state sales and use tax. (gov sig) (Item #26) (OR -$3,200,000 GF RV See Note)
Exempts business utilities from state sales tax for businesses impacted by 2020 states of disaster or emergency. (gov sig) (Item #26) (OR -$84,400,000 GF RV See Note)
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)