some tax consequences of Hurricanes Katrina and Rita
Article summary. The recent devastation of parts of Louisiana, Mississippi, Alabama, and Texas by Hurricanes Katrina and Rita has raised a number of tax questions of direct relevance to church leaders. This article will review several of them.
On August 29, 2005, Hurricane Katrina slammed into the central gulf coast near New Orleans as a Category 4 storm. It caused damages of unprecedented magnitude in Louisiana, Mississippi, and Alabama, with much of the damage occurring in New Orleans as a result of flooding caused by a failure of the levee system caused by the storm surge. Over 90,000 square miles were declared disaster areas by the federal government. A few weeks later, Hurricane Rita made landfall between Sabine Pass, Texas and Johnson's Bayou, Louisiana as a Category 3 storm, causing significant damage.
There are a number of tax issues associated with any natural disaster. This article will address some of the more important ones.