Creates an exemption from sales and use tax for construction materials purchased by the Committee for Plaquemines Recovery (RE DECREASE GF RV See Note)
Impact
If enacted, HB139 would amend existing Louisiana tax law to create a new exemption for the Committee for Plaquemines Recovery, complementing current exemptions available for organizations like Habitat for Humanity. This extension ensures that both state and local sales taxes are waived for the purchase of essential construction materials, potentially lowering project costs significantly for recovery purposes. Additionally, local governments would have the authority to implement these exemptions, which can enhance local responsiveness to recovery efforts while providing financial relief.
Summary
House Bill 139 proposes a sales and use tax exemption specifically for construction materials purchased by the Committee for Plaquemines Recovery. This bill aims to facilitate recovery efforts in Plaquemines by easing the financial burden associated with construction projects in the area, allowing more resources to be allocated toward rebuilding efforts after disasters. By authorizing local governing authorities to grant these exemptions, HB139 adds flexibility for local governments in supporting recovery initiatives within their jurisdictions.
Sentiment
The sentiment surrounding HB139 appears to be largely positive. Legislative discussions reflect a broad consensus on the importance of supporting recovery efforts, especially in vulnerable communities such as Plaquemines. The bill's proponents advocate for the relief it offers, framing it as a necessary step toward rebuilding and revitalizing areas impacted by disasters. There seems to be an acknowledgment of the bill's merit to streamline the recovery process for affected communities.
Contention
While the overall sentiment is supportive, some concerns may arise regarding the potential for misuse of tax exemptions or inequities that might emerge in the absence of strict guidelines. Critics may argue that broad exemptions could lead to revenue losses for local governments, which are crucial for funding essential services. Nonetheless, these points have not prominently surfaced in the discussions recorded around HB139, suggesting that the primary focus remains on the urgency of recovery and the bill's intended benefits.
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)
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)
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)
Provides for a sales and use tax exemption for purchases of certain construction and building materials purchased by or for NOLA Motorsports Park (OR -$240,000 GF RV See Note)
Provides for the extent of applicability of various exclusions and exemptions from state sales and use tax (Item #36) (EG +$789,900,000 GF RV See Note)