HLS 12RS-737 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 345
BY REPRESENTATIVE ABRAMSON
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Authorizes adjustment
of ad valorem tax exempt status for certain nonprofit entities in Orleans Parish and
requires downward adjustment of all affected millages to prevent any resulting
increase in the amount of taxes collected
A JOINT RESOLUTION1
Proposing to add Article VII, Section 21(B)(4) of the Constitution of Louisiana, to provide2
relative to ad valorem taxation; to authorize the local governing authority of Orleans3
Parish and the city of New Orleans to, by ordinance, provide with respect to the4
applicability and extent of certain exemptions; to require voter approval; to require5
downward adjustment of millages in the year of implementation; to provide for6
effectiveness; to provide for submission of the proposed amendment to the electors;7
and to provide for related matters.8
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members9
elected to each house concurring, that there shall be submitted to the electors of the state of10
Louisiana, for their approval or rejection in the manner provided by law, a proposal to add11
Article VII, Section 21(B)(4) of the Constitution of Louisiana, to read as follows:12
§21. Other Property Exemptions13
Section 21. In addition to the homestead exemption provided for in Section14
20 of this Article, the following property and no other shall be exempt from ad15
valorem taxation:16
* * *17
(B)18
* * *19 HLS 12RS-737 ORIGINAL
HB NO. 345
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(4)(a) Notwithstanding any provision of this constitution to the contrary,1
each exemption established in Subparagraphs (1) through (3) of this Paragraph,2
which are hereinafter referred to collectively as "existing exemptions", shall be3
effective and applicable in Orleans Parish and the city of New Orleans unless and4
until a change in a specific existing exemption is effected by a resolution or5
ordinance which is approved by the electors in Orleans Parish and the city of New6
Orleans in accordance with the procedural requirements of this Subparagraph.7
(b) The local governing authority of Orleans Parish and the city of New8
Orleans may provide by resolution or ordinance, hereinafter referred to as9
"ordinance", for the applicability or extent of any existing exemption. The ordinance10
shall designate the specific exemption to be affected, and an ordinance may contain11
changes to more than one specific exemption. The ordinance shall only become12
effective upon the approval of a majority of the electors in Orleans Parish and the13
city of New Orleans voting thereon in an election held for that purpose. Any change14
in an existing exemption which is approved by the electors shall become effective15
on the first day of the calendar year following the year in which it was approved by16
the electors, and is deemed to be an instance of implementation of the provisions of17
this Subparagraph. If not approved by the electors, an ordinance to effect a change18
in an existing exemption shall have no effect.19
(c) The total amount of ad valorem taxes collected by any taxing authority20
in any year in which the provisions of this Subparagraph are implemented shall not21
be increased, as a result of such implementation, above the amount of ad valorem22
taxes collected in the year preceding the implementation. To accomplish this result,23
it shall be mandatory for each affected taxing authority to adjust millages downwards24
without regard to millage limitations otherwise contained in this constitution. The25
maximum authorized millages shall be decreased in proportion to the amount of26
adjustment downward. Thereafter, such millages shall remain in effect unless27
changed as permitted by this constitution.28 HLS 12RS-737 ORIGINAL
HB NO. 345
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Section 2. Be it further resolved that the provisions of the amendment contained in1
this Joint Resolution shall become effective on January 1, 2013.2
Section 3. Be it further resolved that this proposed amendment shall be submitted3
to the electors of the state of Louisiana at the statewide election to be held on November 6,4
2012.5
Section 4. Be it further resolved that on the official ballot to be used at said election6
there shall be printed a proposition, upon which the electors of the state shall be permitted7
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as8
follows:9
Do you support an amendment to authorize the local governing authority of10
Orleans Parish and the city of New Orleans to provide by ordinance with11
respect to the applicability and extent of certain ad valorem tax exemptions12
with concurrent downward adjustment of millages to reflect any resulting13
change in the tax base? (Effective January 1, 2013) (Adds Article VII,14
Section 21(B)(4))15
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)]
Abramson HB No. 345
Abstract: Authorizes adjustment of ad valorem tax exempt status for certain nonprofit
entities in Orleans Parish and requires concurrent downward adjustment of millages
to reflect any resulting changes in tax base.
Present constitution grants exemptions from ad valorem tax for nonprofit entities organized
and operated for various purposes, including: charitable, religious, burial places, health,
welfare, fraternal, educational, labor, clubs, lodges, trade, travel, and promotion.
Proposed constitution provides that exemptions in present constitution shall apply unless and
until the local governing authority of Orleans Parish and the city of New Orleans, by
ordinance and with voter approval, elects to provide for the applicability or extent of
exemptions in present constitution. Any change in an exemption shall become effective on
the first day of the calendar year following the year in which it was approved and shall be
deemed to be an implementation of proposed constitution.
Proposed constitution requires that in any year in which the provisions of proposed
constitution are implemented, all millages be adjusted downward to prevent any increase in
the amount of taxes collected due to the provisions of proposed constitution. To accomplish
this result, each taxing authority is required, in any year of implementation, to adjust HLS 12RS-737 ORIGINAL
HB NO. 345
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millages downwards without regard to millage limitations contained in present constitution,
and the maximum authorized millages shall be decreased, without further voter approval.
Thereafter, such millages shall remain in effect unless changed as permitted by present
constitution.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 6, 2012.
Effective Jan. 1, 2013.
(Adds Const. Art. VII, §21(B)(4))