HLS 12RS-981 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 889
BY REPRESENTATIVE CHAMPAGNE
DISTRICTS/TAXING: Exempts certain businesses from sales and use taxes levied by
economic development districts that have tax increment financing authority
AN ACT1
To amend and reenact R.S. 33:9038.39, relative to sales and use taxes levied by economic2
development districts that are authorized to issue bonds secured by tax increments;3
to provide an exemption from such taxes; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 33:9038.39 is hereby amended and reenacted to read as follows:6
ยง9038.39. Levy of ad valorem tax, sales tax, and/or hotel occupancy tax7
A. Subject to limitations and prohibitions of the Louisiana Constitution, an8
economic development district has the power to levy ad valorem taxes, sales taxes,9
or hotel occupancy taxes within the district up to five mills of ad valorem taxes, up10
to two percent of sales taxes, or up to two percent of hotel occupancy taxes, or any11
combination of such taxes, above and in addition to any other ad valorem taxes, sales12
taxes, or hotel occupancy taxes, or combination of such taxes, then in existence or13
permitted to be in existence within the district. Any such increase in taxes shall be14
levied only after the governing authority of the district has adopted an appropriate15
resolution giving notice of its intention to levy such taxes, which resolution shall16
include a general description of the taxes to be levied, and notice of this intention17
shall be published once a week for two weeks in the official journal of the district,18
the first publication to appear at least fourteen days before the public meeting of the19
governing authority of the district at which the governing authority will meet in open20 HLS 12RS-981 ORIGINAL
HB NO. 889
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and public session to hear any objections to the proposed levy of increased taxes.1
The notice of intent so published shall state the date, time, and place of the public2
hearing. Such tax increase may be levied only after the governing authority of the3
district has called a special election submitting the proposition for the levy of such4
taxes to the qualified electors of the district and the proposition has received the5
favorable vote of a majority of the electors voting in the election; however, in the6
event there are no qualified electors in the district as certified by the registrar of7
voters, no such election shall be required. The powers and rights conferred by this8
Section shall be in addition to the powers and rights conferred by any other general9
or special law. This Section, and any provisions of this Chapter not inconsistent10
therewith, does and shall be construed to provide a complete and additional method11
for the levy of any ad valorem tax, sales tax, or hotel occupancy tax or combination12
of such taxes. No election, proceeding, notice, or approval shall be required for the13
levy of such taxes except as provided herein. The provisions of this Section shall be14
liberally construed for the accomplishment of its purposes.15
B. If a business has a license or permit from the appropriate local16
governmental subdivision to operate at a particular location at the time the location17
becomes included within the boundaries of an economic development district created18
pursuant to this Part, the business is exempt from all sales and use taxes levied by the19
district. With respect to any such district created prior to July 1, 2012, or boundaries20
of which were modified prior to July 1, 2012, a business that was licensed or21
permitted to operate at a location at the time the location became included within the22
boundaries of such a district is prospectively exempt from such taxes except to the23
extent that the proceeds of such taxes have been pledged to the repayment of bonds24
or other obligations.25
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor26
and subsequently approved by the legislature, this Act shall become effective on July 1,27
2012, or on the day following such approval by the legislature, whichever is later.28 HLS 12RS-981 ORIGINAL
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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)]
Champagne HB No. 889
Abstract: Exempts any business from sales and use taxes levied by TIF districts if the
business existed when it was drawn into the district.
Present law authorizes parishes and municipalities to create economic development districts
that are authorized to issue bonds secured by a pledge of tax increments; such districts are
commonly referred to as TIF districts. Further authorizes such districts, subject to voter
approval, to levy ad valorem taxes, sales taxes, and hotel occupancy taxes
Proposed law retains present law but provides for an exemption from sales and use taxes
levied by any such district; specifically the exemption applies to any business that has a
license or permit from the parish or municipality to operate at a particular location at the
time the location becomes included within the boundaries of such a district. Proposed law
is prospectively applicable to businesses that were included in such district prior to the
effective date of proposed law except to the extent that such taxes were pledged to the
repayment of bonds or other obligations.
Effective July 1, 2012.
(Amends R.S. 33:9038.39)