HLS 15RS-945 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 361
BY REPRESENTATIVE JAY MORRIS
TAX/AD VALOREM-MFG/EXEMP: (Constitutional Amendment) Provides with respect
to certain contracts granting ad valorem property tax exemptions for certain
manufacturing establishments and additions
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 21(F) of the Constitution of Louisiana, relative to
3 ad valorem property tax exemptions; to provide with respect to certain contracts
4 granting ad valorem property tax exemptions for certain manufacturing
5 establishments and additions; to provide for the amount of the exemption; to provide
6 for the term of the initial contract and renewals; to provide for submission of the
7 proposed amendment to the electors; to provide for effectiveness; and to provide for
8 related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 21(F) of the Constitution of Louisiana, to read as follows:
13 §21. Other Property Exemptions
14 Section 21. In addition to the homestead exemption provided for in Section
15 20 of this Article, the following property and no other shall be exempt from ad
16 valorem taxation:
17 * * *
18 (F) Notwithstanding any contrary provision of this Section, the State Board
19 of Commerce and Industry or its successor, with the approval of the governor, may
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-945 ORIGINAL
HB NO. 361
1 enter into contracts for the exemption from ad valorem taxes of up to eighty-five
2 percent of the assessed value of a new manufacturing establishment or an addition
3 to an existing manufacturing establishment, on such terms and conditions as the
4 board, with the approval of the governor, deems in the best interest of the state.
5 The exemption shall be for an initial term of no more than five calendar
6 years, and may be renewed for an additional five two years. All property exempted
7 shall be listed on the assessment rolls and submitted to the Louisiana Tax
8 Commission or its successor, but no taxes shall be collected thereon during the
9 period of exemption.
10 The terms "manufacturing establishment" and "addition" as used herein mean
11 a new plant or establishment or an addition or additions to any existing plant or
12 establishment which engages in the business of working raw materials into wares
13 suitable for use or which gives new shapes, qualities or combinations to matter which
14 already has gone through some artificial process.
15 Section 2. Be it further resolved that the provisions of the amendment contained in
16this Joint Resolution shall become effective on January 1, 2016, and shall be applicable to
17all contracts executed on and after that date.
18 Section 3. Be it further resolved that this proposed amendment shall be submitted
19to the electors of the state of Louisiana at the statewide election to be held on October 24,
202015.
21 Section 4. Be it further resolved that on the official ballot to be used at the election,
22there shall be printed a proposition, upon which the electors of the state shall be permitted
23to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
24follows:
25 Do you support an amendment restricting the Board of Commerce and
26 Industry from entering into contracts granting an exemption from local ad
27 valorem property taxes for more than 85% of the assessed value of
28 manufacturing establishments and additions to existing manufacturing
29 establishments and to limit the term of renewals of such contracts to no more
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-945 ORIGINAL
HB NO. 361
1 than two years instead of five years? (January 1, 2016) (Amends Article VII,
2 Section 21(F))
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)]
HB 361 Original 2015 Regular Session Jay Morris
Abstract: Reduces the amount of the ad valorem property tax exemption on manufacturing
establishments or additions from a 100% exemption to an exemption which shall not
exceed 85% of the assessed value of the property and reduces the term of the renewal
from an additional five years to not more than two years.
Present constitution requires the assessment of property for purposes of ad valorem taxation.
The assessed value of a property shall be based on a percentage of the property's fair market
value.
Present constitution provides for a list of property exempt from ad valorem property tax in
addition to the homestead exemption.
Present constitution authorizes the State Board of Commerce and Industry, with the approval
of the governor, to enter into contracts exempting new manufacturing establishments or
additions to existing manufacturing establishments from ad valorem property taxes on terms
and conditions the board deems in the best interest of the state. The initial term of the
exemption contract shall be for no more than five calendar years with authorization for a
renewal for an additional five years.
Proposed constitutional amendment changes present constitution by reducing the amount of
the exemption on manufacturing establishments or additions to manufacturing
establishments from a 100% exemption to an exemption which shall not exceed 85% of the
assessed value of the property. Proposed constitutional amendment further reduces the term
of the renewal from an additional five years to not more than two years.
Present constitution defines a "manufacturing establishment" or an "addition" as a new plant
or establishment or an addition or additions to any existing plant or establishment which
engages in the business of working raw materials into wares suitable for use or which gives
new shapes, qualities or combinations to matter which has gone through some artificial
process.
Proposed constitutional amendment retains present constitution.
Effective Jan. 1, 2016, and is applicable to all contracts executed on and after that date.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held October 24, 2015.
(Amends Art. VII, §21(F))
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