Louisiana Senate Bill SB331

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Authorizes contracts of exemption from property tax for businesses. (2/3 - CA13s1(A)) (1/1/13) (OR DECREASE LF RV See Note)

Impact

If enacted, SB 331 could have significant implications for state laws regarding property tax exemptions. By allowing local parishes the ability to opt into a program that grants tax exemptions to qualifying businesses, the bill aims to streamline the process for businesses seeking lucrative tax incentives. Furthermore, it requires the legislature to establish a framework for how these contracts will be administered, including limitations and guidelines ensuring fairness and consistency across parishes.

Summary

Senate Bill 331 proposes a constitutional amendment to allow the State Board of Commerce and Industry, with gubernatorial approval, to enter into contracts that exempt certain businesses from ad valorem property taxes. This measure targets businesses that are considered 'eligible' and located in parishes that have opted into this program. The aim is to stimulate economic growth by incentivizing businesses to relocate or expand within the state, thereby fostering an environment conducive to economic development and job creation.

Sentiment

The sentiment surrounding SB 331 appears generally favorable among pro-business advocates who argue that it is necessary for Louisiana's economic development. Supporters believe that providing tax exemptions is a strategic way to attract businesses and revitalize local economies, especially in areas struggling with economic hardship. However, there may be caution from some lawmakers regarding how this measure could affect local government revenues and the equitable distribution of tax burdens among businesses and residents.

Contention

Notable points of contention involve concerns about the potential for unequal benefits granted to businesses based on their location and the impact on local tax revenues. Critics may argue that such tax exemptions could create disparities between different parishes, particularly those not opting into the program versus those that do. Additionally, there is apprehension regarding the long-term fiscal implications of allowing extensive tax exemptions, questioning whether the initial economic stimulation is worth the potential decline in local funding for essential services.