HLS 12RS-282 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 611
BY REPRESENTATIVE TIM BURNS
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Authorize the granting
of ad valorem tax exemption contracts by the Board of Commerce and Industry for
certain businesses
A JOINT RESOLUTION1
Proposing add Article VII, Section 21(L) of the Constitution of Louisiana, to authorize the2
granting of ad valorem tax exemption contracts to certain businesses; to authorize3
the Board of Commerce and Industry to enter into contracts subject to gubernatorial4
approval; to provide for certain contract limitations; to provide with respect to the5
assessment and taxation of property subject to a contract; to require the legislature6
to establish a program for the granting of contracts; to provide for effectiveness; to7
provide for submission of the proposed amendment to the electors; and to provide8
for related matters.9
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members10
elected to each house concurring, that there shall be submitted to the electors of the state of11
Louisiana, for their approval or rejection in the manner provided by law, a proposal to add12
Article VII, Section 21(L) of the Constitution of Louisiana, to read as follows:13
§21. Other Property Exemptions14
Section 21. In addition to the homestead exemption provided for in Section15
20 of this Article, the following property and no other shall be exempt from ad16
valorem taxation:17
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HB NO. 611
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(L)(1) Notwithstanding any provision of this constitution to the contrary, the1
State Board of Commerce and Industry or its successor may enter into a contract for2
the exemption from ad valorem taxes, hereinafter referred to as "contract", of3
property owned by an eligible business which is located in a parish which has agreed4
to participate in a program for the granting of such contracts. The contract shall be5
subject to approval by the governor and shall be made on such terms and conditions6
as deemed by the board to be in the best interest of the state.7
(2) The contract shall be for an initial term of no more than five calendar8
years, and may be renewed for an additional five years. The renewal of a contract9
shall not be contingent upon the continued participation in the program by a parish.10
A business which receives an exemption contract pursuant to this Paragraph shall be11
ineligible to receive any other ad valorem tax exemption contract authorized by this12
constitution.13
(3) All property exempted pursuant to a contract shall be listed on the14
assessment rolls and submitted to the Louisiana Tax Commission or its successor,15
but no taxes shall be collected thereon during the period of exemption; however, the16
exemption shall in no way affect or impair the security of any bonds payable from17
the proceeds of a tax.18
(4) The legislature shall establish a program for the granting of contracts,19
except that provisions governing the inclusion or exclusion of specific taxes shall be20
only as provided in this Paragraph. 21
Section 2. Be it further resolved that this proposed amendment shall be submitted22
to the electors of the state of Louisiana at the statewide election to be held on November 6,23
2012.24
Section 3. Be it further resolved that the provisions of the amendment contained in25
this Joint Resolution shall become effective on January 1, 2013.26
Section 4. Be it further resolved that on the official ballot to be used at the election,27
there shall be printed a proposition, upon which the electors of the state shall be permitted28 HLS 12RS-282 ORIGINAL
HB NO. 611
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to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as1
follows:2
Do you support an amendment to authorize the granting of ad valorem tax3
exemption contracts by the Board of Commerce and Industry for businesses4
located in parishes which have chosen to participate in a program established5
for the granting of such contracts? (Effective January 1, 2013) (Adds Article6
VII, Section 21(L))7
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)]
Tim Burns HB No. 611
Abstract: Authorizes the granting of ad valorem tax exemption contracts for businesses
at the discretion of the Board of Commerce and Industry under certain
circumstances.
Proposed constitution authorizes the granting of an ad valorem tax exemption contract
(hereinafter contract) by the State Board of Commerce and Industry or its successor
(hereinafter board) for the property of an eligible business which is located in a parish which
has agreed to participate in the program. Contracts are subject to gubernatorial approval and
shall be made on such terms and conditions as deemed by the board to be in the best interest
of the state.
Proposed constitution requires that all property exempted pursuant to a contract be listed on
the assessment rolls, but no taxes shall be collected thereon during the period of exemption;
however, the exemption shall in no way affect or impair the security of any bonds payable
from the proceeds of a tax.
Proposed constitution provides that the initial term of a contract shall be up to five calendar
years, and may be renewed for an additional five years. The renewal of a contract shall not
be contingent upon a parish's continued participation in the program. A business which
receives an exemption contract pursuant to proposed constitution is precluded from receiving
any other ad valorem tax exemption contract authorized by the constitution of La.
Proposed constitution directs the legislature to establish a program for the granting of
contracts, and prohibits the legislature from by law providing for the inclusion or exclusion
of specific taxes which will be subject to the exemption.
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(L))