HLS 11RS-2397 ORIGINAL
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Regular Session, 2011
HOUSE RESOLUTION NO. 86
BY REPRESENTATIVE LEGER
TAX EXEMPTIONS: Requests the House Committee on Municipal, Parochial and Cultural
Affairs to study the impact of the homestead exemption, nonprofit exemption, and
other property tax exemptions on local government revenue
A RESOLUTION1
To urge and request the House Committee on Municipal, Parochial and Cultural Affairs to2
study the impact of the homestead exemption, nonprofit exemption, and other3
property tax exemptions on local government revenue, and to report its findings to4
the House of Representatives by February 1, 2012.5
WHEREAS, in 1934, as part of the state of Louisiana's response to the Great6
Depression, Louisiana voters approved a constitutional amendment creating a homestead7
exemption; and8
WHEREAS, the constitutional amendment also directed the Louisiana Legislature9
to create the Property Tax Relief Fund to offset local government revenue losses from the10
homestead exemption; and11
WHEREAS, in 1972, a federal court found that manipulations of assessments and12
millage rates at the local level were resulting in an arbitrary and inequitable distribution of13
state funds, in violation of the Equal Protection Clause of the United States Constitution, and14
directed the state to come up with a new distribution plan; and 15
WHEREAS, in 1972, Louisiana voters amended the state constitution to replace the16
Property Tax Relief Fund with the Revenue Sharing Fund; and17
WHEREAS, the constitutional amendment required the legislature to appropriate a18
minimum of eighty million dollars a year for the Revenue Sharing Fund; and19 HLS 11RS-2397 ORIGINAL
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WHEREAS, in 1974, Louisiana voters approved a new state constitution which1
increased the appropriation for the Revenue Sharing Fund to a minimum of ninety million2
dollars a year; and3
WHEREAS, in 1974, the annual appropriation of ninety million dollars was adequate4
to offset local government revenue losses from the homestead exemption; and5
WHEREAS, in addition to the homestead exemption, the state constitution exempts6
property owned by a wide array of nonprofit entities, including those organized and operated7
exclusively for religious, charitable, health and welfare, fraternal, or educational purposes,8
labor unions, and lodges or clubs; and9
WHEREAS, the loss of revenue caused by the homestead exemption has continued10
to grow over the years, and yet the Louisiana Legislature continues to appropriate to the11
Revenue Sharing Fund only the minimum ninety million dollars a year; and12
WHEREAS, local governments face many challenges due to the loss of revenue13
caused by the homestead exemption and the nonprofit exemption, and this is particularly true14
in the city of New Orleans as the homestead exemption also applies to municipal taxes; and15
WHEREAS, a stable, long-term source of revenue to properly fund government16
operations is essential to ensure the public safety, sanitation, recreation, and other vital city17
services; to promote health and well being of youth and families; to create well-paying jobs18
and provide equal access to economic prosperity; and to create sustainable communities; and19
WHEREAS, disparities within the current tax structure must be eliminated in due20
course to ensure that no particular group or individual bears an unfair tax burden; and21
WHEREAS, tax policies need to be competitive in order to attract residents and22
businesses; and23
WHEREAS, reforms are needed in order to bring greater fairness, equity, and24
competitiveness to the current tax structure; and25
WHEREAS, the Tax Fairness Commission was created by the Honorable Mitchell26
J. Landrieu, mayor of the city of New Orleans, to review the current tax system; and 27
WHEREAS, the commission recommended the following:28
(1) The Louisiana Legislature be informed of problems created by the loss of29
revenue due to the homestead exemption and the legislature's failure to properly increase30 HLS 11RS-2397 ORIGINAL
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appropriations to the Revenue Sharing Fund to offset the adverse impact on local1
governments.2
(2) The Louisiana Legislature place before the voters a constitutional amendment3
that would redefine and narrow the property that can be considered tax-exempt in a manner4
more consistent with what is done in other states.5
(3) The Louisiana Legislature place before the voters a constitutional amendment6
that would allow local governments more control concerning property tax exemptions for7
nonprofits.8
(4) The Louisiana Legislature place before the voters a constitutional amendment9
that reverses certain court decisions regarding the acceptable uses of exempt property owned10
by a nonprofit. 11
THEREFORE, BE IT RESOLVED that the House of Representatives of the12
Legislature of Louisiana requests the House Committee on Municipal, Parochial and13
Cultural Affairs to study the impact of the homestead exemption, nonprofit exemption, and14
other property tax exemptions on local government revenue.15
BE IT FURTHER RESOLVED that the committee shall specifically solicit the input,16
recommendations, and advice from those who can provide relevant information and17
suggestions to the committee based upon their expertise and experience, including but not18
limited to the following:19
(1) The Louisiana Association of Non Profit Organizations.20
(2) The United Way.21
(3) Tulane University.22
(4) Xavier University.23
(5) Catholic Charities.24
(6) The Archdiocese of New Orleans.25
(7) Loyola University.26
(8) The Louisiana Hospital Association.27
(9) The city of New Orleans.28
BE IT FURTHER RESOLVED that all departments, boards, agencies, officers, and29
institutions of the state and all subdivisions thereof shall cooperate with the committee in30 HLS 11RS-2397 ORIGINAL
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providing information to assist the committee in carrying out its responsibility pursuant to1
this Resolution.2
BE IT FURTHER RESOLVED that the committee shall report the results of its study3
and its recommendations, including proposed legislation, to the House of Representatives4
by February 1, 2012.5
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Leger HR No. 86
Requests the House Committee on Municipal, Parochial and Cultural Affairs to study the
impact of the homestead exemption, nonprofit exemption, and other property tax exemptions
on local government revenue, with an emphasis on the city of New Orleans.
Provides that the committee shall solicit the input, recommendations, and advice of those
who can provide relevant information and suggestions to the committee based upon their
expertise and experience, including but not limited to:
(1)The La. Association of Non Profit Organizations.
(2)The United Way.
(3)Tulane University.
(4)Xavier University.
(5)Catholic Charities.
(6)The Archdiocese of New Orleans.
(7)Loyola University.
(8)The La. Hospital Association.
(9)The city of New Orleans.
Requires all state departments, boards, agencies, officers, and institutions and all
subdivisions of the state to cooperate with the committee in providing information to assist
the committee.
Requires that the committee report the results of its study and its recommendations,
including proposed legislation, to the House of Representatives by Feb. 1, 2012.