Louisiana House Bill HB335

Louisiana 2012 Regular Session

• Introduced: 2/28/12
• Refer: 3/20/12
• Refer: 4/30/12
• Refer: 5/1/12
• Engrossed: 5/7/12
• Refer: 5/8/12
• Report Pass: 5/21/12
• Enrolled: 5/24/12
• Chaptered: 6/5/12
• Passed: 6/5/12

Caption

Relative to the New Orleans City Park Taxing District, provides with respect to procedures relative to use of state sales tax increments for tax increment financing (EN DECREASE GF RV See Note)

Impact

The impact of HB335 centers on enhancing the funding mechanisms available for local economic developments in New Orleans through the use of state sales tax increments. By allowing these increments to contribute to revenue bonds for projects in the City Park Taxing District, it is expected to attract investment and stimulate growth in the area. The legislation reinforces the role of local governments in initiating development projects while ensuring compliance with state regulations and budgetary scrutiny, potentially leading to improved infrastructure and services in the district.

Summary

House Bill 335 aims to amend and reenact existing laws related to the New Orleans City Park Taxing District, specifically addressing tax increment financing (TIF). The bill allows for the dedication of state sales tax increments to finance local economic development projects, subject to certain conditions and approvals. It outlines the responsibilities of the district's board in determining sales tax areas and managing the baseline collection rates for the tax increments. Notably, the measure requires the approval of the Joint Legislative Committee on the Budget before such dedications can occur, ensuring legislative oversight in financial matters related to these local projects.

Sentiment

The sentiment around HB335 appears generally favorable, particularly among local officials and stakeholders who view it as a tool for enhancing economic development opportunities within New Orleans. Supporters argue that facilitating financial resources through state sales tax increments will empower the district to undertake significant projects that may otherwise lack funding. However, there may be underlying concerns regarding the dependency on state revenues and the implications for long-term financial stability.

Contention

While there is broad support for the bill, notable points of contention could arise surrounding the approval process for projects and the potential for mismanagement of funds. Critics may voice concerns regarding accountability and the necessity for clear guidelines on how state sales tax increments are allocated. Additionally, there may be debates around prioritizing projects and ensuring that the interests of the local community are adequately represented in the decision-making process.