Louisiana House Bill HB681

Louisiana 2021 Regular Session

• Introduced: 4/21/21
• Refer: 4/22/21

Caption

Provides an exclusion from sales and use taxes for certain establishments (OR DECREASE SD RV See Note)

Impact

If enacted, HB 681 will amend existing state tax law, explicitly defining what constitutes a 'hotel' in relation to sales and use taxes. By excluding specific types of housing facilities from this definition, the bill facilitates a legal and financial framework that encourages the establishment of more temporary housing options in the face of crises. This initiative aligns with a growing recognition of the need for adaptable housing solutions during temporary workforce surges and recovery efforts, thereby potentially influencing housing policies and tax structures at the local level.

Summary

House Bill 681, sponsored by Representative Bourriaque, introduces an important tax exemption for certain types of establishments that provide temporary housing. The bill specifically excludes disaster recovery housing and temporary workforce housing from the definitions of 'hotel' for taxation purposes, effectively relieving these establishments from sales and use taxes as well as hotel occupancy taxes. This legislation aims to support communities in recovery efforts from disasters and provide affordable housing for workers in need of short-term accommodation.

Sentiment

The sentiment surrounding HB 681 appears to be largely supportive among stakeholders who advocate for housing solutions in emergency and workforce contexts. Proponents assert that the financial relief from taxes is vital for fostering environments where disaster recovery housing can thrive and where workers can find affordable lodging. However, there may be concerns from traditional hospitality businesses that rely on consistent tax income and fear that these exemptions could undercut their competitive landscape.

Contention

Notable points of contention may arise regarding the implications of the bill for existing hotels and temporary lodging facilities which do not meet the new criteria. Critics may argue that by exempting certain establishments, the bill could potentially lead to a decrease in overall revenue from hotel occupancy taxes, affecting funding for local services and tourism-related initiatives. This tension between supporting community needs and maintaining a robust tax base for local governance could lead to ongoing discussions and modifications as the bill progresses through the legislative process.