HLS 15RS-1217 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 613
BY REPRESENTATIVE LEGER
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Phases-in over a five
year period an exemption for items constituting business inventory
1 A JOINT RESOLUTION
2Proposing to add Article VII, Section 21(M) of the Constitution of Louisiana, to provide
3 with respect to ad valorem property tax; to exempt certain items constituting
4 business inventory from ad valorem property tax; to provide for effectiveness; to
5 provide for submission of the proposed amendment to the electors; and to provide
6 for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
9elected to each house concurring, that there shall be submitted to the electors of the state of
10Louisiana, for their approval or rejection in the manner provided by law, a proposal to add
11Article VII, Section 21(M) of the Constitution of Louisiana, to read as follows:
12 §21. Other Property Exemptions
13 Section 21. In addition to the homestead exemption provided for in Section
14 20 of this Article, the following property and no other shall be exempt from ad
15 valorem taxation:
16 * * *
17 (M) Beginning January 1, 2016, items constituting business inventory,
18 including goods which are held for sale, goods in production or for ultimate
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HB NO. 613
1 consumption in the production of goods or services for sale, and goods utilized in
2 marketing and distribution activities, referred to hereinafter as "property", shall be
3 exempt in accordance with the following;
4 (1) For taxes payable in 2016, the value of the exemption shall be equal to
5 twenty percent of the assessed value of the property.
6 (2) For taxes payable in 2017, the value of the exemption shall be equal to
7 forty percent of the assessed value of the property.
8 (3) For taxes payable in 2018, the value of the exemption shall be equal to
9 sixty percent of the assessed value of the property.
10 (4) For taxes payable in 2019, the value of the exemption shall be equal to
11 eighty percent of the assessed value of the property.
12 (5) Beginning January 1, 2020, the property will be fully exempt from
13 taxation.
14 * * *
15 Section 2. Be it further resolved that the provisions of the amendment contained in
16this Joint Resolution shall be become effective on January 1, 2016, and shall be applicable
17to taxable years beginning on and after such 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 to gradually exempt items constituting
26 business inventory from ad valorem property tax over five years? (January
27 1, 2016) (Adds Article VII, Section 21(M))
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HB NO. 613
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 613 Original 2015 Regular Session Leger
Abstract: Five year phase-in of an ad valorem property tax exemption for items
constituting business inventory beginning in 2016.
Present constitution authorizes local governments to impose an ad valorem property tax upon
movable and immovable property within their jurisdictions.
Proposed constitutional amendment provides for a five year phase in (20% per year) of an
exemption from ad valorem property tax for items constituting business inventory. Such
items include goods which are held for sale, goods in production or for ultimate consumption
in the production of goods or services for sale, and goods utilized in marketing and
distribution activities.
Effective Jan. 1, 2016, and is applicable to taxable years beginning on and after such date.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Oct. 24, 2015.
(Adds Const. Art. VII, §21(M))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.