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.
Louisiana REALTORS® CEO Norman Morris issued the following statement after SpaceX announced plans to invest $100 billion in a new launch facility in Vermilion Parish. The project is expected to create 3,000 direct jobs and more than 8,100 indirect jobs across Acadiana. “SpaceX’s investment is an extraordinary economic win for Louisiana. We congratulate Governor Jeff Landry, Louisiana Economic Development Secretary Susan Bourgeois, Vermilion Parish leaders, and everyone who helped bring this historic project home. The housing and infrastructure improvements needed to support more than 11,000 new job opportunities should generate a huge economic boost to the Acadiana and Gulf Coast region. According to the National Association of REALTORS®, each typical Louisiana home sale generates approximately $88,600 in economic activity. Even if only half of the new SpaceX related jobs lead to a home purchase, the impact would generate nearly half a billion dollars across our state's economy. That improves our tax base and school systems, and ripples through our economy touching builders, bankers, hardware stores, appliance dealers, contractors and so many more. “Housing is not downstream of economic development; it is an essential infrastructure. Louisiana REALTORS® and our partners stand ready to help turn these new jobs into homes, stronger communities and lasting roots in Louisiana. Economic development creates jobs, but housing turns those jobs into homes. Let’s make Louisiana home again, together.” Economic-impact estimates are illustrative calculations by Louisiana REALTORS® using employment projections from Louisiana Economic Development and the National Association of REALTORS®’ estimated economic impact per typical Louisiana home sale. They are not forecasts or recurring annual-impact figures. Enjoy the video below from the Louisiana Department of Economic Development .
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