Gov. Haley Barbour has called a special session of the state legislature for today (Thursday) when he will ask legislators to cut the state tax on modular homes for Gulf Coast residents to by $4,000, thereby reducing the total cost of the homes to $6,000.
At least one state representative beleives the issue could meet some opposition in the House and drag the session out over a number of days.
Barbour said that reducing the cost of modular homes is one of the most effective ways to remove barriers to housing for those whose residences were destroyed or damaged by Hurricane Katrina.
The proposal was part of a bill during the last regular legislative session this year that passed the Senate, but was not brought to the floor for a vote in the House of Representatives.
Rep. Rita Martinson (R-Madison), however, said that she anticipates that the session will probably last beyond Thursday, because some members of the House oppose the bill, or desire to attach a homeowners grant to the bill that they say will help to make up for federal dollars that have been slow to reach Gulf Coast residents.
Because of shortages in labor on the Gulf Coast, Barbour has encouraged alternatives to regular housing that do not require the same amount of construction time.
To that end, he wants these alternatives to be more affordable for those in the state that need new housing.
"The number one priority and challenge in Mississippi caused by Katrina is housing," Barbour said in a statement. "We must act now to remove barriers to building housing on the Gulf Coast, and reducing the tax on modular homes is a necessary step toward that end."
Currently, modular housing is taxed by the state at a 7 percent rate for materials and labor. Barbour's proposal would bring materials and labor for modular homes into the same tax classification as materials and labor for conventional manufactured housing, which are currently taxed at 3 percent.
Barbour argued that because there is "very little" modular housing currently in the state, the impact of a tax reduction on the state's funds will be slight.
Modular housing is built in sections separately, and then transported to the site, where the sections are placed and connected on a previously built foundation. Utilities are then installed.
Martinson said that she fully supports the tax reduction as a way to help out homeowners on the Gulf Coast and believes that some legislators are simply trying to stall the bill in order to attach the homeowners grant.
This grant would give around $15,000 to $20,000 to each homeowner in a number of counties on the Gulf Coast to aid in home rebuilding.
Members of House, such as Rep. Cecil Brown (D-Jackson) and Rep. Percy Watson (D-Hattiesburg), have argued that the grants will give much-needed money to those who are waiting for federal aid funds.
"All of it is just politics," said Martinson, adding that she did not support the grant because it would duplicate federal aid dollars.
Reader Comments
Posted: Wednesday, October 31, 2007
Article comment by:
Nancy j. Smith & caretaker(jerry)
Please pass the Grant for a modular home for me to be built on the Gulf Coast as I need this Grant to start my life over.I have been plagued with one sickness after another and I feel that if I'm ever going to start up a bussiness I would have a better chance going to an area that doesn't know me & is better suited for the things I will need. I have tried hard to get ahead after being bested with one debilitating state of affairs after another.I even got so desperate to make ends meet,that I filed for bankruptcy thinking that that might help my situation out and indeed I was wrong again.I have been turned down for any assistance because of this.Please pass the bill and give me the fresh start I need.NancyJ.Smith(democrat).(human-being)
