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ACT No. 1042
Regular Session, 2010
HOUSE BILL NO. 1457
BY REPRESENTATIVE MONICA
AN ACT1
To amend and reenact R.S. 9:2347(M), R.S. 39:996, and R.S. 51:1160 and to enact R.S.2
39:1002, relative to payments in lieu of taxes, fees, and charges paid by a lessee to3
a political subdivision, industrial development board, or certain public trust; to4
provide that certain payments, fees, and charges paid by a lessee to a political5
subdivision, industrial development board, or certain public trust under certain6
circumstances shall be statutory impositions; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:2347(M) is hereby amended and reenacted to read as follows: 9
§2347. Bonds of public trust 10
* * *11
M. The property of any public trust, having as its beneficiary the parish of12
Jefferson, which is authorized under its trust indenture to engage in or issue bonds13
to finance projects for substantially all of the public purposes set forth in R.S.14
9:2341(B)(1), acquired or held for one or more of said purposes, is hereby declared15
to be public property used for essential public and governmental purposes.16
Accordingly, such public trust, and all of its properties at any time owned by it and17
the income therefrom and all bonds issued by it and the income therefrom, shall be18
exempt from all taxes of the parish or municipality, the state, or any political19
subdivision thereof or any other taxing body, provided, however, that such public20
trust may require the lessee of each of the projects of the public trust to pay annually21 ENROLLEDHB NO. 1457
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to parish or municipal taxing authorities or to any other taxing body, through the1
normal collecting agency, a sum in lieu of ad valorem taxes to compensate such2
authorities for any services rendered by them to such projects, which sum shall not3
be in excess of the ad valorem taxes such lessee would have been obligated to pay4
to such authorities had it been the owner of such project during the period for which5
such payment is made. Such payments to be made in lieu of taxes together with any6
fees and charges of such public trust, to the extent in the aggregate they do not7
exceed the amount of taxes that would be paid if the lessee were the owner, shall8
constitute statutory impositions within the meaning of R.S. 47:2128. No provision9
of this Subsection shall become effective until approved by resolution of the10
Jefferson Parish Council.11
Section 2. R.S. 39:996 is hereby amended and reenacted and R.S. 39:1002 is hereby12
enacted to read as follows: 13
§996. Lease, sublease, or sale of project prior to issuance of bonds; terms and14
conditions15
Prior to the issuance of any bonds under this Part, the municipality shall16
lease, sublease, or agree to sell the project to a lessee, sublessee, or purchaser under17
an agreement conditioned upon completion of the project and providing for payment18
to the municipality of such rentals or installment payments as will be sufficient (a)19
to pay the principal of and interest on the bond issued to finance the project, (b) build20
up and maintain any reserve deemed by the governing body to be advisable in21
connection therewith, and (c) unless the contract obligates the lessee, sublessee, or22
purchaser to pay for the maintenance and insurance of the project, to pay the cost of23
maintaining the project in good repair and keeping it properly insured. Such lease,24
sublease, or agreement of sale shall be made upon such other terms and conditions25
and for the time which may be determined by the municipality and may contain26
provisions authorizing the purchase of the entire leased project or any portion thereof27
by the lessee or its assignee, where applicable, after all bonds issued thereunder have28 ENROLLEDHB NO. 1457
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been paid in full, for such consideration and upon such terms and conditions as the1
municipality may determine. If title to the project is in the municipality, the2
municipal corporation may specifically require as a condition under the lease3
agreement, that the lessee of each of the projects of said municipal authority shall4
pay annually to the appropriate taxing authority, through the normal collecting5
agency, a sum in lieu of ad valorem taxes to compensate such authorities for any6
services rendered by them to such projects which sum shall not be in excess of the7
ad valorem taxes such lessee would have been obligated to pay to such authorities8
had it been the owner of such project during the period for which such payment is9
made. Such payments to be made in lieu of taxes together with any fees and charges10
of such public trust, to the extent in the aggregate they do not exceed the amount of11
taxes that would be paid if the lessee were the owner, shall constitute statutory12
impositions within the meaning of R.S. 47:2128.13
* * *14
1002. Payments Constitute Statutory Impositions15
Payments in lieu of ad valorem tax, fees, and other charges to be paid by a16
lessee to a political subdivision, industrial development board, or a public trust17
whose property is exempt from ad valorem taxation pursuant to R.S. 9:2347(M),18
39:996, 51:1160, or any other provision of law authorizing fees and charges to be19
imposed on a lessee, up to the amount that would be due if the property were owned20
by a private entity and subject to ad valorem tax, shall constitute statutory21
impositions within the meaning of R.S. 47:2128. Provided that the local tax collector22
is notified in writing of any required payment in lieu of ad valorem tax, the tax23
collector shall collect such payments. Additionally, upon notice in writing from the24
political subdivision, industrial development board, or public trust whose property25
is exempt from ad valorem taxation that fees and charges constituting statutory26
impositions have not been paid, the tax collector shall collect the monies owed and27
enforce payment in the same manner as for ad valorem taxes. A pledge of the28 ENROLLEDHB NO. 1457
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payment of such amounts which constitute statutory impositions, if any, to secure1
obligations of an industrial development board or political subdivision, shall2
automatically be subject to a tax equivalent lien in the same manner as obligations3
payable from ad valorem taxes.4
Section 3. R.S. 51:1160 is hereby amended and reenacted to read as follows: 5
§1160. Exemption from taxation; classification of bonds 6
The corporation is hereby declared to be performing a public function on7
behalf of the municipality or parish with respect to which the corporation is8
organized and to be a public instrumentality of such municipality or parish.9
Accordingly, the corporation and all properties at any time owned by it and the10
income therefrom and all bonds issued by it and the income therefrom shall be11
exempt from all taxation in the state of Louisiana; provided, however, that the12
corporation may require the lessee of each of the projects of the corporation to pay13
annually to parish or municipal taxing authorities, through the normal collecting14
agency, a sum in lieu of ad valorem taxes to compensate such authorities for any15
services rendered by them to such projects which sum shall not be in excess of the16
ad valorem taxes such lessee would have been obligated to pay to such authorities17
had it been the owner of such project during the period for which such payment is18
made. Such payments to be made in lieu of taxes together with any fees and charges19
of such public trust, to the extent in the aggregate they do not exceed the amount of20
taxes that would be paid if the lessee were the owner, shall constitute statutory21
impositions within the meaning of R.S. 47:2128. Also for the purposes of R.S.22
51:704(2) 51:708(1) and any amendment thereto or substitution therefor, bonds23
issued by the corporation shall be determined to be securities issued by a public24
instrumentality of a political subdivision of the state of Louisiana.25
Section 4. This Act shall become effective upon signature by the governor or, if not26
signed by the governor, upon expiration of the time for bills to become law without signature27
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If28 ENROLLEDHB NO. 1457
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: