SLS 12RS-398 ORIGINAL
Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 331
BY SENATORS RISER AND ALARIO
TAX/AD VALOREM. Authorizes contracts of exemption from property tax for businesses.
(2/3 - CA13s1(A)) (1/1/13)
A JOINT RESOLUTION1
Proposing to add Article VII, Section 21(L) of the Constitution of Louisiana, relative to2
authorizing the granting of ad valorem tax exemption contracts to certain businesses;3
to authorize the Board of Commerce and Industry to enter into contracts subject to4
gubernatorial approval; 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 establish a program for the granting of contracts; to provide for7
effectiveness; and to specify an election for submission of the proposition to electors8
and provide a ballot proposition.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, for11
their approval or rejection in the manner provided by law, a proposal to add Article VII,12
Section 21(L) of the Constitution of Louisiana, to read as follows:13
ยง21. 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 SB NO. 331
SLS 12RS-398 ORIGINAL
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
* * *1
(L)(1) Notwithstanding any provision of this constitution to the contrary,2
the State Board of Commerce and Industry or its successor may enter into a3
contract for the exemption from ad valorem taxes of property owned by an4
eligible business which is located in a parish which has agreed to participate in5
a program for the granting of such contracts. The contract shall be subject to6
approval by the governor and shall be made on such terms and conditions as7
deemed by the board to be in the best interest of the state.8
(2) The contract shall be for an initial term of no more than five9
calendar years, subject to renewals as provided by law. The renewal of a10
contract shall not be contingent upon the continued participation in the11
program by a parish.12
(3) All property exempted pursuant to a contract shall be listed on the13
assessment rolls and submitted to the Louisiana Tax Commission or its14
successor, but no taxes shall be collected thereon during the period of15
exemption. However, the exemption shall in no way affect or impair the16
security of any existing bonds payable from the proceeds of a tax.17
(4) The legislature shall establish a program for the granting of18
contracts, except for provisions governing the inclusion or exclusion of specific19
taxes which shall be as provided in this Paragraph. 20
Section 2. Be it further resolved that this proposed amendment shall be submitted21
to the electors of the state of Louisiana at the statewide election to be held on November 6,22
2012.23
Section 3. Be it further resolved that the provisions of the amendment contained in24
this Joint Resolution shall become effective on January 1, 2013.25
Section 4. Be it further resolved that on the official ballot to be used at said election26
there shall be printed a proposition, upon which the electors of the state shall be permitted27
to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as28
follows:29 SB NO. 331
SLS 12RS-398 ORIGINAL
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Do you support an amendment to authorize the granting of ad valorem tax1
exemption contracts by the Board of Commerce and Industry for businesses2
located in parishes which have chosen to participate in a program established3
for the granting of such contracts? (Effective January 1, 2013) 4
(Adds Article VII, Section 21(L))5
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Proposed constitutional amendment authorizes the State Board of Commerce and Industry,
with the approval of the governor to enter into a property tax exemption contract for property
owned by an "eligible business" which is located in a parish which has agreed to participate
in a program for the granting of such contracts. The renewal of the contract is not contingent
upon the a parish's continued participation in the program.
The contract is for an initial term of no more than 5 calendar years. Renewals are to be as
provided by law. The contract is subject to such terms and conditions as deemed by the
board to be in the best interest of the state.
The legislature must establish a program for the granting of contracts, except for provisions
which govern the inclusion or exclusion of specific taxes.
All property exempted pursuant to a contract must be listed on the assessment rolls and
submitted to the Louisiana Tax Commission, but no taxes can be collected thereon during
the period of exemption. However, the exemption can in no way affect or impair the
security of any existing bonds payable from the proceeds of a tax.
Specifies submission of the amendment to the voters at the statewide election to be held on
Nov. 6, 2012.
Effective January 1, 2013.
(Adds Article VII, Section 21(L))