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
From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple joined Governor Jeff Landry and Senate Insurance Committee Chairman Kirk Talbot today to announce that Louisiana is investing an additional $20 million in Fortified homes, bringing the total amount invested in state Fortified projects this year to $100 million. Governor Landry announced that $20 million from the U.S. Department of Housing and Urban Development will be transferred to the Louisiana Office of Community Development Restore Resilient Opportunities for Overhead Fortification (Restore ROOF) program to strengthen residential structures and reduce long-term disaster risk. Earlier this year, the Legislature passed a bill that allows $50 million in additional Katrina and Rita bond money from Louisiana Citizens Property Insurance Corporation to be added to the Department of Insurance’s Louisiana Fortify Homes Program (LFHP). Also beginning this year, LFHP is projected to receive approximately $30 million annually from taxes and fees the Louisiana Department of Insurance collects from the insurance industry. “Building stronger homes is a vital part of making homeowners insurance affordable in Louisiana,” said Commissioner Temple. “I appreciate Governor Landry’s leadership and support as we work with legislators like Chairman Talbot to make Louisiana a national leader in the adoption of Fortified roofs.” The Louisiana Department of Insurance (LDI) has finalized its promulgation of Regulation 136—Fortify Homes Premium Discounts. The purpose of Regulation 136 is to implement the statutory provisions set forth in La. R.S. 22:1483, et seq. , which require that all Louisiana property and casualty insurers provide premium discounts or insurance rate reductions for homes constructed or upgraded in accordance with the fortified standards created by the Insurance Institute for Business and Home Safety. View Regulation 136 here .
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