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: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
Learn how to lower your debt-to-income ratio before buying a home in Louisiana and why working with an experienced real estate agent can help.
NAR is pleased to share the latest new consumer guide, “Overcoming Roadblocks to a Sale or Purchase,” which helps buyers and sellers prepare for the most common potential pitfalls so their transaction closes smoothly. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. On June 3, we’ll have a new consumer guide on unpacking after a move and a refreshed guide in the value of MLS.
