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ACT No. 871
Regular Session, 2012
HOUSE BILL NO. 674
BY REPRESENTATIVE ROBIDEAUX
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 which3
contain such terms and conditions as provided by law; to provide with respect to the4
assessment and taxation of property subject to a contract; to provide for5
effectiveness; to provide for submission of the proposed amendment to the electors;6
and to provide for related matters.7
Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members8
elected to each house concurring, that there shall be submitted to the electors of the state of9
Louisiana, for their approval or rejection in the manner provided by law, a proposal to add10
Article VII, Section 21(L) of the Constitution of Louisiana, to read as follows:11
ยง21. Other Property Exemptions12
Section 21. In addition to the homestead exemption provided for in Section13
20 of this Article, the following property and no other shall be exempt from ad14
valorem taxation:15
* * *16
(L)(1) Except as otherwise provided herein, property owned or leased by,17
and used by, a targeted non-manufacturing business in the operation of its facility,18
including buildings, improvements, equipment, and other property necessary or19
beneficial to such operation, according to a program and pursuant to contracts of20
exemption which contain such terms and conditions which shall be provided by law.21
Land underlying the facility and other property pertaining to the facility on which ad22 ENROLLEDHB NO. 674
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valorem taxes have previously been paid, inventories, consumables, and property1
eligible for the manufacturing exemption provided by Paragraph (F) of this Section,2
shall not be exempt under this Paragraph.3
(2) Ad valorem taxes shall apply to the assessed valuation of the first ten4
million dollars or ten percent of fair market value, whichever is greater, and this5
amount of property shall not be exempt under this Paragraph.6
(3) A targeted non-manufacturing business means at least fifty percent of7
such business' total annual sales from a site or sites in the state is to out-of-state8
customers or buyers, or to in-state customers or buyers but the product or service is9
resold by the purchaser to an out-of-state customer or buyer for ultimate use, or to10
the federal government, or any combination thereof. The legislature may provide by11
law for the inclusion of sales by affiliates when appropriate in making this fifty12
percent determination.13
(4) A contract for the exemption shall be available only in parishes which14
have agreed to participate, in the manner provided by the legislature by law.15
Section 2. Be it further resolved that this proposed amendment shall be submitted16
to the electors of the state of Louisiana at the statewide election to be held on November 6,17
2012.18
Section 3. Be it further resolved that the provisions of the amendment contained in19
this Joint Resolution shall become effective on January 1, 2013.20
Section 4. Be it further resolved that on the official ballot to be used at the election,21
there shall be printed a proposition, upon which the electors of the state shall be permitted22 ENROLLEDHB NO. 674
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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
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE