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 362 Original 2015 Regular Session Stokes
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 contract from a total
of 10 calendar years to not more than eight calendar 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 contract from an initial term of
five calendar years with an additional five year renewal to a term of not more than eight calendar
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, ยง21(F))