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 753 Original 2015 Regular Session Stokes
Abstract: For purposes of ad valorem property tax, changes the classification for the calculation
of property tax for certain public service companies, including telephone companies, barge,
towing, and other water transportation companies, also provides various parameters
regarding the valuation and assessment of the movable and immovable properties.
Present constitution classifies property subject to ad valorem property taxation and the percentage
of fair market value applicable to each classification for the purpose of determining assessed
valuation are as follows:
Classifications Percentages
1. Land 10%
2. Improvements for residential purposes 10%
3. Electric cooperative properties, excluding land 15%
4. Public service properties; excluding land 25%
5. Other property 15%
Present constitution requires each local tax assessor to determine the fair market value of all property
subject to taxation within his respective parish or district except "public service properties", which
must be valued by the Louisiana Tax Commission ("LTC").
Present constitution authorizes the legislature to enact laws defining "public service properties".
Present law provides definitions, including those for "barge line, towing, and other water
transportation company", "major movable property", and "other movable property" as follows:
(1)"Barge line, towing, and other water transportation company" means any resident or
nonresident company, whether domiciled in this state or outside this state, whose boats,
barges, or other watercraft either owned or leased are engaged in the business of water
transportation as a common, contract, or private carrier over the inland waterways of this
state on a regular basis. Excluded from the definition are supply vessels, overnight leisure
passenger vessels, and crew vessels.
(2)"Major movable property" of a "barge line, towing, and other water transportation company"
means all movable and regularly moved boats, barges, and other watercraft and floating
equipment and similar things which have not the character of immovable property, either owned or leased for a definite and specific term; but not including other movable property
of a barge line, towing, and other water transportation company, specifically excluding motor
vehicles.
(3)"Other movable property" of "public service properties" means all other property, corporeal
or incorporeal, not included within the definition of immovable property or "major movable
property" and not immovable by nature or by disposition of law, which are "so owned,
leased, and so operated or used," including, but not limited to, material and supplies,
inventories, fuel, leased rail, tools, furniture and fixtures, machinery, scales, pumps, water
wells, communication equipment used solely in an enterprise and not available to the public,
landing piers, docks, and all similar equipment. The definition excludes property specifically
exempt by law.
Proposed law retains the definitions in present law as they are applicable to "barge line, towing, and
other water transportation companies but moves them into the proposed law dealing with non-public
service properties. Further, proposed law defines barge line, towing, and other water transportation
companies to not be "public service properties" and specifies that their property, except land, shall
be assessed at 15% of fair market value. This changes the assessment rate from 25% to 15%.
Proposed law deletes"telephone companies" from the definition of "public service properties".
Present law requires the LTC to appraise "public service properties" and allocate the assessed
valuation of each company among local taxing authorities. However, land and all taxable
"immovable", "major movable property", and "other movable" public service properties of a
company that is "nonoperating or nonutility" must be appraised and assessed by the local tax
assessor in the same manner and by the same standards as similar property in the parish in which it
is located. Further, the LTC is required to allocate the appraised value of the property by utilizing
percentages: most pertinent for "barge line, towing, and other water transportation companies," miles
traveled by water by company property within the state divided by the miles traveled by water
everywhere.
Proposed law requires the LTC to apportion the "estimated value" of the property of a barge line,
towing, and other water transportation company which shall be subject to assessment by local tax
assessors by the percentage of miles traveled by water by company property within the state divided
by the miles traveled by water everywhere. The estimated value of all lands owned by a barge line,
towing, and other water transportation company in this state must be deducted from the total
estimated value apportioned by the LTC and must be assessed by the local tax assessor in which the
land is located. In addition, only the estimated value of "major movable property" owned or used in
the state in interstate or interparish operations is to be allocated by the LTC.
Proposed law provides that in any dispute as to the correctness or legality of an assessment, there
shall be a rebuttable presumption that the allocation of estimated value of property by the Louisiana
Tax Commission is the proper allocation of the value of such property.
Proposed law retains the specific rules in present law for allocating "major movable" or "other movable property" owned or used in La. by a "barge line" or "towing company".
Effective January 1, 2016.
(Amends R.S. 47:1851(M); Adds R.S. 47:1954.1; Repeals R.S. 47:1851(B) and (Q), and 1855(G)
and (H))