Chattanooga Mayor Andy Berke last week testified before the U.S. Senate Committee on Finance, Subcommittee on Taxation and IRS Oversight. The hearing, entitled “Tax Relief after a Disaster: How Individuals, Small Businesses, and Communities Recover,” was held by Chairman Senator Robert Casey, Jr., of Pennsylvania and Ranking Member Senator Michael Enzi of Wyoming. Mayor Berke provided testimony on how cities like Chattanooga are “affected by natural disasters and how, with greater tax relief, they can recover stronger.”
During his testimony, Mayor Berke detailed the flooding and severe storms, including almost 20 tornadoes, which occurred in March 2012, as well as the provisions in the National Disaster Tax Relief Act of 2014 that, if passed, will directly help communities recover after a disaster.
“There is one thing we all know very clearly. When a community suffers this kind of disaster, the speed at which aid is administered directly correlates with the speed in which a community can heal,” said Mayor Berke. “And I have no doubt by speeding up the time in which tax relief is available to families and businesses, we will see our communities recover quicker.”
In March 2012, Tennessee was declared a federal disaster area. Dozens of families in Hamilton County lost their homes, 82 buildings were destroyed, and businesses faced physical damage and lost earnings. Property damage in Hamilton County totaled more than $16.8 million. In addition, eight percent of the homeowners affected in Tennessee during the 2012 storms were low-income.
During his testimony, Mayor Berke recognized the specific provisions in the National Disaster Tax Relief Act of 2014 that will benefit citizens after a disaster. These provisions include the 50 percent Depreciation Bonus Provision and Extension Net Operating Loss Carryback Provision, which provides local businesses with cash flow during the recovery years after a disaster. In addition, increases to the Low-Income Housing Credit allocation will “help cities like ours recover and maximize their affordable housing stock – helping countless local families stay in their homes.”
Source: Office of the Mayor