Legislative Session Update - Sales Tax Win & Other Important Bills
LOUISIANA REALTORS • May 25, 2017
The legislative session is set to end by June 8th. The Senate is currently reviewing and debating the 2018 state budget passed by the House. Most of the proposed taxes on real estate services and business either have failed passage or were not brought forth for a committee vote. The proposed budget is then expected to be sent to a conference committee.
Louisiana REALTORS® sponsored Senate Bill 108 by Senator Bodi White passed the House of Representatives unanimously late last week and now awaits the Governor’s signature. Once signed by the Governor the law will take effect on August 1st, 2017. This legislation makes it a misdemeanor for anyone practicing real estate without a license and would require out of state licensees/brokers to either become licensed or work with an existing broker or agent when conducting business in Louisiana.
LR is working to help pass two other important bills making their way through the legislative process:
Senate Bill 140 by Senator Mike Walsworth is a constitutional amendment that would exempt property which is delivered to a construction site for use in the building and construction of the project from ad valorem taxes until the completion of the construction project. The proposed budget is then expected to be sent to a conference committee.
Senate Bill 162 By Senator Conrad Appel makes a technical change to state law which will encourage locals to foster the development of affordable housing units through incentives instead of inclusionary zoning. Studies have shown that inclusionary zoning can cause more harm than good and could affect a developers’ decision to build low income and moderate housing units. This bill will open more avenues through incentives for developers and locals to partner for success in this area.
LR will continue to monitor the session activities to ensure that you and the consumers you serve are not over regulated or taxed. Continue to refer to Legislative Bill Grid or Legislative Session Update page to review in detail all legislation being tracked or call Norman Morris with any questions.
From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple announced today that the Louisiana Department of Insurance (LDI) continues its work to develop a regulation creating benchmark discounts for Fortified roofs in Louisiana. The LDI is working with the National Association of Insurance Commissioners (NAIC) to develop the benchmark discounts using Louisiana-specific data, hurricane modeling and actuarial considerations. “With over 11,000 Fortified roofs in Louisiana and two years-worth of insurer experience with rating for those roofs in our state, now is an appropriate time for the LDI to establish benchmark discounts for homeowners insurance companies operating in our market,” said Commissioner Temple. “These benchmarks are being thoughtfully developed to help consumers receive the discounts they deserve for fortifying their homes while making sure insurers know the benchmarks reflect how much Fortified roofs actually mitigate their exposure to risk across Louisiana.” Like in Alabama’s Fortified benchmark discount structure, the LDI regulation would require Louisiana insurance companies to either meet the minimum benchmark discount established by the LDI or provide actuarial justification for why the company’s discount does not meet the benchmark. Louisiana is the fastest growing state for Fortified roofs in America. To date, over 11,000 Fortified roofs have been installed in Louisiana, including over 4,100 through the Louisiana Fortify Homes Program.
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