[StBernard] LA Sales Tax Refund on Katrina Losses

[Westley Annis]

 I've had the form to be completed for a couple of weeks. I just assumed
everyone had already known about its content. 

However, if this "returns 4% sales tax to LA residents, just curious about a
couple of things.

1. Will the amount given back to folks as a "Sales tax Refund" be subtracted
from the Road Home amount when it's distributed in the late summer? Or is it
a different type of help to residents.

2. With so many of us losing our receipts, how will we honestly tract what
we had and how will the state track/confirm the way we listed "moveable
objects" damaged by ths storm?

3. Are the items listed just to be listed within a specific time period of
purchase (say during the past year before Katrina? Or, are ALL of our
contents (those not covered by our Flood Insurance/Homeowners) inclusive?
How does this work? Thanks.


Jer.

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I am so glad that Ken Madere has brought the State of LA sales tax refund
application to the attention of the group. In assisting people with their
taxes I am absolutely amazed that so many have not taken advantage of this
wonderful opportunity to get their sales taxes back on the items purchased
and lost in the storm.  What a shame on the State of Louisiana for not
inundating the populace with the knowledge of this benefit.

All individuals who are filing their taxes using the Katrina casualty losses

are already preparing a list of their lost items in the storm.  The items
list the values of their contents at their original cost AND the lower fair
market values by way of depreciating the original cost.  Your list now has
two values.  You will use the lower value, usually the fair market value, to

place on your income tax return less your insurance proceeds.  On the State
sales tax reimbursement application that Ken was so kind to provide, you
will use the higher original cost values.  You can then use the original
list you prepared for the income tax return and attach it to the State sales

tax refund application instead of rewriting the list which is already a time

consuming, emotional and exhausting process.  After deducting your insurance

proceeds from the original cost you can get the 4% State sales tax back. 
There is also a line on the form to reduce your contents values by the
Governmental assistance your already received as well as your insurance
proceeds.  Please do NOT use any SBA loan proceeds or the checks from FEMA
that amounted to the original $2,000 or the next $2,358.  That money was
provided for your rental assistance or loss of use of your home.  That money

was not intended to reimburse you for your lost contents.  So, please do not

place those values on your State sales tax reimbursement page.  However,
there were some individuals who received money in excess of the $2,000 and
$2,358 and usually was in the amount of $10,000 or so.  I would tend to
think that money would be considered to use on that line because FEMA's
intent was just for those individuals to use as contents replacement.  Those

individuals were usually renters or adult children still living with their
parents.

Thanks again, Ken, for bring this valuable information to Westley's family
of St. Bernardians.

Dan Johnson, CPA