HLS 12RS-4041 ORIGINAL
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Regular Session, 2012
HOUSE STUDY REQUEST NO. 7
BY REPRESENTATIVE CHAMPAGNE
DISTRICTS/TAXING: Requests the House Committee on Municipal, Parochial and
Cultural Affairs to study certain matters relative to tax increment financing districts
A STUDY REQUEST1
To the House Committee on Municipal, Parochial and Cultural Affairs to study the impact2
that requiring broader voter approval prior to the creation of tax increment financing3
districts, authorizing businesses to opt out of tax increment financing districts after4
they are created, and repealing provisions that authorize the creation of tax increment5
financing districts would have on local governments and to report study findings and6
recommendations to the House of Representatives prior to the convening of the 20137
Regular Session of the Legislature of Louisiana.8
WHEREAS, tax increment financing is a widely used local government tool for9
financing economic development projects; and10
WHEREAS, tax increment financing allocates future increases in taxes from a11
designated area to pay for improvements within that area; and12
WHEREAS, tax increment financing has been implemented in virtually every kind13
of community, including downtown development districts, urban industrial districts, small14
towns, suburbs, and even farmlands; and15
WHEREAS, R.S. 33:9038.31 et seq. authorizes local governmental subdivisions to16
establish, by ordinance, economic development districts that may implement ad valorem tax17
increment financing and sales tax increment financing and may additionally levy ad valorem18
taxes, sales taxes, and hotel occupancy taxes within the geographic boundaries of the district;19
and20 HLS 12RS-4041 ORIGINAL
HSR NO. 7
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WHEREAS, some argue that there is little evidence that tax increment financing has1
done much to help local governments, and it is also a source of intergovernmental tension2
and a locus of conflict over the scope of public aid to the private sector; and3
WHEREAS, pursuant to R.S. 33:9038.31 et seq., the governing authority of a tax4
increment financing district must receive the approval of district residents, if such residents5
exist, prior to levying taxes within the geographic boundaries of the district; and 6
WHEREAS, because the impact of the recession on consumer spending has7
decreased the revenue generated by commercial projects, which have been the cornerstone8
of tax increment financing districts, and thus has negatively affected local government9
revenue, many argue that residents and business owners located within the geographic10
boundaries of proposed districts should have a greater voice in deciding whether such11
districts should be created.12
THEREFORE, the House of Representatives of the Legislature of Louisiana requests13
the House Committee on Municipal, Parochial and Cultural Affairs to study the impact that14
requiring broader voter approval prior to the creation of tax increment financing districts,15
authorizing businesses to opt out of tax increment financing districts after they are created,16
and repealing provisions that authorize the creation of tax increment financing districts17
would have on local governments and to report study findings and recommendations to the18
House of Representatives prior to the convening of the 2013 Regular Session of the19
Legislature of Louisiana.20
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 HSR No. 7
Requests the House Committee on Municipal, Parochial and Cultural Affairs to study certain
matters relative to tax increment financing districts and to report its findings prior to the
2013 R.S.