On May 27th, Governor Jon Bel Edwards issued an agenda for a Second Special Session staring July 1, 2016 to address the $600 million budget shortfall for FY 2017 and the unintended tax consequences created during the First Special Session of 2016 which affected nonprofit organizations and schools in Louisiana.
HB 61 (Act 25) and HB 62 (Act 26) enacted during the First Special Session of 2016 carried big changes for the nonprofit sector and made previous exclusions and exemptions for the sector taxable. Governor Edwards’ proposes to address these acts during this Second Special Session. Items to be addressed include but are not limited to:
• Tickets to school athletic and entertainment events.
• Food sales by youth serving organizations (such as Girl Scouts).
• Sales and donations to food banks.
• Room rentals at non-profit camp and retreat facilities, and certain homeless shelters.
• Non-profit organization’s sales of donated goods when the organization uses 75% or more of the revenue to employ or train persons with disabilities.
• Purchases, leases or rentals by hospitals that provide free care to all patients.
• Membership fees or dues of non-profit civic organizations.
• Non-profit fundraiser/entertainment events and musicals; Little Theatre organizations’ events; fairs and festivals; and certain non-profit admissions, parking fees, and sales.
• School lunches and meals furnished by various educational, religious, or medical organizations.
To read Governor Edwards’ full plan, click here.
While we understand the purpose of this session is budget stabilization, we are pleased that the Governor and our Legislators appreciate the impact these taxes have imposed on the nonprofit sector and are addressing the acts during this second special session. LANO is carefully monitoring movement of the Governors 2016 Second Special Session Plan and continue to have conversations to ensure the sector’s needs are heard. Any additional information will be shared through the LANO network.
Please see the attached document from the National Council of Nonprofits, their partnership with LANO provides guidance and education on advocacy for the nonprofit sector.