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 657 Original 2015 Regular Session Ivey
Abstract: Dedicates one-half of the avails of the existing 0.97% state sales and use tax for deposit
for distribution to eligible political subdivisions according to a formula based on a parish's
total ad valorem tax collections as compared to the total of all collections in the state; also
establishes the Property Tax Support Fund as a special treasury fund for purposes of the
dedication.
Present law imposes three separate state sales and use tax levies (2%, 1%, and .97%) upon the sale
at retail, the use, the consumption, the distribution, the storage, lease, or rental of tangible personal
property in this state, as well as certain services.
Proposed law dedicates the avails of one-half of 0.97% sales and use taxes levied by present law for
appropriation exclusively for purposes of the distribution of such revenues to eligible political
subdivisions.
Proposed law establishes in the state treasury the Property Tax Support Fund ("fund"). The purpose
of the fund is for the receipt and distribution of monies dedicated for the support of the local taxing
authorities in the state that on January 1, 2015, levied an ad valorem tax.
Appropriations from the fund are authorized solely for distribution to eligible political subdivisions.
Unexpended and unencumbered monies remaining in the fund at the end of the fiscal year shall
remain in the fund. Investment earnings on monies in the fund shall be credited to the fund.
Proposed law requires that from the monies remaining after satisfaction of the requirements of the
Bond Security and Redemption Fund, the state treasurer shall deposit into the fund an amount equal
one-half of the annual avails of the state sales and use tax imposed pursuant to R.S. 47:331.
Proposed law provides that monies appropriated from the fund each year, the state treasurer shall
make distributions to eligible political subdivisions. The distribution shall be made in accordance
with a formula based on the proportion that each parish's total ad valorem tax collections from 2013,
2014, and 2015, bears to the total of such collections from all parishes in 2013, 2014, and 2015.
Present law provides for dedications of monies from the avails of the state sales and use taxes as
follows:
(1)Monies necessary to satisfy the requirements of the Bond Security and Redemption Fund as
provided in present constitution; (2)Of the monies remaining thereafter, an amount equal to four-tenths of one percent of all
monies from state sales and use taxes collected shall be deposited into the Marketing Fund
and used for purposes of economic development as provided by present law.
(3)All monies remaining thereafter are deposited into the state general fund.
Proposed law retains present law except adds the dedication for the Property Tax Support Fund after
satisfaction of the requirement of the Bond Security and Redemption Fund and before deposits into
the Marketing Fund.
Effective if and when the proposed amendment of Article VII of the Constitution of La. contained
in the Act which originated as House Bill No. ______ of this 2015 R.S. of the Legislature is adopted
at a statewide election and becomes effective.
(Amends R.S. 47:318; Adds R.S. 39:100.146)