Louisiana Senate Bill SB239

Louisiana 2021 Regular Session

• Introduced: 4/19/21
• Refer: 4/20/21
• Report Pass: 4/26/21
• Engrossed: 4/29/21
• Refer: 5/3/21
• Report Pass: 5/24/21
• Enrolled: 6/9/21
• Chaptered: 6/14/21
• Passed: 6/14/21

Caption

Modifies the federal income tax deduction for taxpayers impacted by 2020 hurricanes. (gov sig) (EN DECREASE GF RV See Note)

Impact

The bill is set to provide both prospective and retroactive tax relief, addressing an urgent need for assistance among residents impacted by recent hurricanes. By clarifying the applicability of the tax relief, SB239 ensures that a greater number of individuals are able to benefit from the relief measures associated with their federal tax liabilities. This change is expected to ease the financial burden on citizens during a time of recovery and to encourage compliance by simplifying the tax implications of claimed deductions for disaster losses.

Summary

Senate Bill 239 aims to provide tax relief for individual income taxpayers in Louisiana who were affected by the 2020 hurricanes, specifically Hurricanes Laura, Delta, and Zeta. This bill modifies the definition of federal income tax liability to accommodate the claims made by these taxpayers utilizing the federal standard deduction. It specifically revises the impact of the federal standard deduction and itemized deductions as they pertain to disaster losses sustained during the hurricanes, thus providing retrospective benefits for those impacted previous to the bill's passage.

Sentiment

The sentiment toward SB239 appears to be positive among legislators, as evidenced by the unanimous vote in favor of the bill with 34 yeas and no nays during the Senate vote. Supporting legislators likely view it as a necessary measure to assist individuals in their recovery from natural disasters. However, as with any financial legislation, there may be underlying concerns regarding its fiscal impact on the state's budget, particularly as it involves reducing tax revenues to support citizens in need.

Contention

While the bill reached favorable consensus among legislators, the primary points of contention could revolve around the implications of tax deductions and the necessity of such relief efforts. Lawmakers may debate the adequacy and sufficiency of the current tax standards in relation to disaster recovery efforts. Some might argue that while the bill alleviates immediate financial pressures, a long-term structural approach is needed for comprehensive disaster recovery and economic resilience, particularly for communities frequently affected by hurricanes.