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Regular Session, 2012
HOUSE BILL NO. 674
BY REPRESENTATIVE ROBIDEAUX
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Authorizes the granting
of ad valorem tax exemption contracts by the Board of Commerce and Industry for
certain businesses
A JOINT RESOLUTION1
Proposing to add Article VII, Section 21(L) of the Constitution of Louisiana, to authorize2
the granting of ad valorem tax exemption contracts to certain businesses; to authorize3
the Board of Commerce and Industry to enter into contracts; to provide with respect4
to contract approvals; to provide for certain contract limitations; to provide with5
respect to the assessment and taxation of property subject to a contract; to require the6
legislature to establish a program for the granting of contracts; to provide for7
effectiveness; to provide for submission of the proposed amendment to the electors;8
and to provide 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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(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 of property owned by an eligible business3
which is located in a parish and, if applicable, municipality and school district, which4
has agreed to participate in a program for the granting of such contracts. The5
contract shall be subject to approval by the governor and shall be made on such6
terms and conditions as deemed by the board to be in the best interest of the state.7
The legislature may provide by law for approval of contracts by the board, the parish8
governing authority, and if applicable, the governing authority of the municipality9
and governing authority of the school district.10
(2) The contract shall be for an initial term of no more than five calendar11
years, subject to renewals as provided by law. The renewal of a contract shall not12
be contingent upon the continued participation in the program by a parish, and, if13
applicable, municipality or school district.14
(3) All property exempted pursuant to a contract shall be listed on the15
assessment rolls and submitted to the Louisiana Tax Commission or its successor,16
but no taxes shall be collected thereon during the period of exemption; however, the17
exemption shall in no way affect or impair the security of any existing bonds payable18
from the proceeds of a tax.19
(4) The legislature shall establish a program for the granting of contracts,20
except for provisions governing the inclusion or exclusion of specific taxes which21
shall be as provided in this Paragraph. 22
Section 2. Be it further resolved that this proposed amendment shall be submitted23
to the electors of the state of Louisiana at the statewide election to be held on November 6,24
2012.25
Section 3. Be it further resolved that the provisions of the amendment contained in26
this Joint Resolution shall become effective on January 1, 2013.27
Section 4. Be it further resolved that on the official ballot to be used at the election,28
there shall be printed a proposition, upon which the electors of the state shall be permitted29 HLS 12RS-704 REENGROSSED
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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)]
Robideaux HB No. 674
Abstract: Authorizes the Board of Commerce and Industry to grant ad valorem tax
exemption contracts for businesses located in parishes participating in a program for
the granting of such tax exemptions.
Proposed constitution authorizes the granting of an ad valorem tax exemption contract by
the State Board of Commerce and Industry, hereinafter "board", or its successor for the
property of an eligible business which is located in a parish, and, where applicable,
municipality or school district 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. The legislature is authorized to provide
by law for approval of contracts by the parish governing authority and the board.
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 existing 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 as provided by law. The renewal of a contract shall not be
contingent upon a parish's, and, if applicable, municipality's or school district's continued
participation in the program.
Proposed constitution directs the legislature to establish a program for the granting of
contracts, with the exception that provisions regarding specific taxes shall be as provided in
proposed 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(L)) HLS 12RS-704 REENGROSSED
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Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Added authorization for the legislature to provide by law for approval of
contracts by the parish governing authority and the board.
House Floor Amendments to the engrossed bill.
1. Added approval authority for municipalities and school districts relative to
program participation and the granting of ad valorem tax exemption contracts.