As its drafted right now, Governor Bobby Jindal's proposed state budget would eliminate state income taxes. By doing so it leaves a three point six billion dollar gap. How that gap is filled comes in the form of an increase in sales tax along with cutting sales tax exemptions for purchases made by non-profit organizations like Habitat for Humanity.
Right now it cost the non-profit about fifty-five thousand dollars in materials for each home. If they have to tack on sales tax, that would be an extra thirty-two hundred dollars per home.
If that were to take place, Melinda Taylor, executive Director for Habitat for Humanity, say the increase in rates would then be passed on to the homebuyers. Taylor says each Habit for Humanity home is not only built, in part, by the homebuyers but they also pay for it through a mortgage set up by the organization. If it cost more to build a home Habitat for Humanity will have no choice but to add that extra cost to their mortgage.
Governor Jindal's proposed budget will be voted on when the legislative session begins April 8th.
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