Louisiana House Bill HB43

Louisiana 2016 2nd Special Session

• Introduced: 6/6/16
• Refer: 6/6/16

Caption

Provides relative to sales by nonprofit entities that sell donated goods and spend 75% or more of the revenue on directly employing or training persons with disabilities (Item #15)

Impact

The implications of HB 43 are notable, as it alters existing tax regulations to include particular nonprofits in the sales tax exemption category, thus potentially increasing their operational viability. By alleviating tax obligations, these organizations will have more resources available to employ and train individuals with disabilities, which could lead to improved employment outcomes for a historically marginalized group. Furthermore, this bill may set a precedent for similar legislation aimed at providing targeted tax relief to nonprofits focused on social causes.

Summary

House Bill 43 seeks to add a specific exemption to Louisiana's state sales and use tax concerning sales made by nonprofit organizations. It explicitly targets nonprofit entities that sell donated goods, provided that at least 75% of their revenue is utilized for the direct employment or training of persons with disabilities. This provision aims to enhance support for such nonprofits by easing the financial burden of taxes, thereby allowing them to invest more in their workforce development and community services. The proposed law is set to take effect on July 1, 2016, marking a significant change in tax policy in relation to nonprofit organizations.

Sentiment

The sentiment surrounding HB 43 appears to be largely positive, particularly among advocates for individuals with disabilities and nonprofit organizations. Supporters argue that the bill promotes inclusivity and enhances economic opportunities for disabled individuals by allowing nonprofits to more effectively deploy their resources. However, there may be dissenting opinions from those concerned about tax exemptions leading to reduced state revenue, which could impact funding for other public services. Overall, the general discourse seems to favor the bill's intent, with emphasis on its social benefits.

Contention

While the bill's framework appears to be primarily supportive of nonprofit entities, its enactment may spur discussion on balancing tax exemptions with public funding needs. Critics may argue that providing exemptions could divert necessary funds from the state budget, ultimately affecting various public services and programs. However, proponents counter that the benefits offered by enhancing employment opportunities for disadvantaged groups are worth the potential trade-offs in tax revenue.