2017 Legislative Session Begins
LOUISIANA REALTORS • April 10, 2017
The Louisiana Legislature convened today, Monday, April 10th. The major focus of the 60-day session will be on the budget deficit facing the state. Tax measures, budget bills, criminal justice reform and TOPS issues will be discussed and debated. Louisiana REALTORS® will be heavily engaged on several tax measures and other bills to ensure the real estate industry and its members are not negatively impacted.
Each week, we will update the membership on legislative activities. This first edition provides a general overview of several bills that have been filed and limited information on the governor’s tax proposals. Most of the tax measures have not been filed yet, so specifics are not available at this time. On April 18, a team of members will review all legislation filed and take positions on these measures.
TAX PROPOSALS BEING DISCUSSED:
Sales Tax on Services Proposal – This proposal would expand the sales tax to include professional services, including services to immovable property. This tax puts an additional sales tax on any services related to the industry, such as appraisals, pest control services, surveying, landscape and lawn maintenance, and extends to the remodeling, renovation and repair of immovable property.
Corporate Tax Proposal – This proposal seeks to eliminate some existing taxes on corporations and creates a new gross receipts tax calculated based on company gross profits. This proposal is being modeled off the state of Ohio model, but the specific details for how it is being proposed in Louisiana have yet to be released. The rate, kinds of receipts to be counted and types of businesses are all important factors. The impact of this tax, while claiming a broad base and low rate, will vary depending on the company and its gross profits. But our early estimates predict an increase in taxes for broker owners and agents.
OTHER BILLS:
Senate Bill 108 by Senator Bodi White
This Louisiana REALTORS®-supported legislation will require out-of-state licensees doing business in Louisiana to either become licensed in the state or co-broke with a Louisiana licensee when conducting business in the state. The legislation provides for a misdemeanor penalty for those who violate this section of the law.
Senate Bill 120 by Senator. Rick Ward
The Louisiana Law Institute is recommending changes to the Louisiana residential leasing laws. The Louisiana REALTORS® legal counsel is reviewing the legislation as are several residential leasing specialists.
House Bill 469 by Representative Reid Falconer
This legislation amends the Louisiana condominium laws and will specifically require all unit owners to carry property and liability insurance on their respective owned units.
Senate Bill 205 by Senator Morrell
This legislation would require the Louisiana Real Estate Commission to refer all investigative complaints to the Division of Administrative Law Judge for final decisions. This legislation would considerably increase costs for the commission with attorney fees and for potential damages should they lose the case. Also, many times these law judges are not experts in immovable property issues.
Senate Bill 236 by Senator Eric LaFleur
This legislation seeks to implement uniform real estate and other document fees filed with the clerks of court. The Louisiana REALTORS® and many in the land title industry are reviewing the legislation.
For information or clarification on any issues during the legislative session please contact: Norman Morris, CEO
Louisiana REALTORS® welcomes SpaceX’s announcement of a more than $100 billion investment to build its largest launch facility in Vermilion Parish, recognizing the historic project as an opportunity to create thousands of jobs while generating significant demand for housing, construction, infrastructure and commercial development across the Acadiana area and Louisiana. According to Louisiana Economic Development, the SpaceX project is expected to create more than 3,000 direct new jobs over the next 10 years, with an average annual salary of $92,600, as well as more than 8,100 indirect jobs. The project is also expected to generate 34,516 construction jobs at peak construction. For Louisiana REALTORS®, the significance of the investment extends beyond the jobs created at the SpaceX campus. Major economic development projects bring new workers, families and businesses to Louisiana, creating demand for homes, rental housing, commercial properties and the infrastructure necessary to support growing communities. “An investment of this magnitude creates opportunities that reach far beyond the project itself,” said Norman Morris, Chief Executive Officer for Louisiana REALTORS®. “Thousands of new jobs mean more families looking for places to live, more businesses needing space and more construction activity to support that growth. Louisiana REALTORS® welcomes this investment because a strong economy and a strong housing market go hand in hand.” The planned SpaceX campus is expected to become the largest spaceport in the world, with capacity to support thousands of launches annually. At full buildout, the site is expected to include five launch complexes with two launch pads each, propellant facilities, power generation, vehicle processing and residential housing for employees and their families. Construction is expected to begin in 2027, with initial operations targeted for 2030. The construction component alone represents a significant opportunity for Louisiana's workforce and businesses. LED estimates that the project could support more than 34,000 construction jobs at peak construction, while SpaceX has joined Source Louisiana to provide Louisiana suppliers, contractors and service providers with a pathway to compete for project-related opportunities. “Louisiana has an opportunity to make sure this historic investment translates into lasting opportunities for Louisiana families and businesses,” Morris said. “That includes having enough housing available for the people coming to work here and creating an environment where builders, developers, contractors and real estate professionals can help meet the needs of growing communities.” Louisiana REALTORS® supports continued efforts to prepare Louisiana communities for the growth associated with major economic development investments. Ensuring adequate housing supply, encouraging responsible construction and development and maintaining infrastructure are essential to making Louisiana an attractive place for businesses, workers and families. SpaceX’s investment adds to a historic period of economic development in Louisiana and further establishes the state as a destination for advanced industries, manufacturing, technology and aerospace. LED describes the project as positioning Louisiana as a global hub for next-generation aerospace and a new center of private spaceflight activity. “Louisiana REALTORS® is excited to see what this investment can mean for the future of our state,” Morris said. “When Louisiana wins major economic development projects, our communities have the opportunity to grow with them. We want to see that growth supported by quality housing, strong communities and opportunities for Louisiana businesses.” Louisiana REALTORS® welcomes SpaceX to Louisiana and looks forward to the opportunities this transformational investment can create for Vermilion Parish, Acadiana and communities across the state. Enjoy the video below from the Louisiana Department of Economic Development .
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