HLS 15RS-1291 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 753
BY REPRESENTATIVE STOKES
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/AD VALOREM TAX: Provides with respect the classification of movable and
immovable property of certain companies for purposes of calculating property tax
1 AN ACT
2To amend and reenact R.S. 47:1851(M), to enact RS. 47:1954.1, and to repeal R.S.
3 47:1851(B) and (Q) and 1855(G) and (H), relative to ad valorem property tax
4 assessments; to provide with respect to the classification of property for use in the
5 calculation of the tax; to provide for public service properties; to define and provide
6 for the estimation of the value of, and allocation of the property of, barge line,
7 towing, and other water transportation companies; to provide with respect to the
8 classification of property owned by a telephone company; to provide for the
9 allocation of certain movable property to the certain taxing authorities; to provide for
10 effectiveness; and to provide for related matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 47:1851(M) is hereby amended and reenacted and RS. 47:1954.1 is
13hereby enacted to read as follows:
14 ยง1851. Definitions
15 * * *.
16 M. "Public service properties" means the immovable, major movable, and
17 other movable property owned or used but not otherwise assessed in this state in the
18 operations of each airline, electric membership corporation, electric power company,
19 express company, gas company, pipeline company, railroad company, telegraph
20 company, telephone company, and water company. For each barge line, towing, and
Page 1 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1291 ORIGINAL
HB NO. 753
1 other water transportation company or private car company, only the major movable
2 property owned or used but not locally assessed or otherwise assessed in this state
3 in interstate or interparish operations shall be considered as public service property.
4 * * *
5 1954.1. Assessment of barge line, towing, and other water transportation
6 companies
7 A. When used in this Section, unless the context requires a different meaning,
8 the following terms shall have the following definitions:
9 (1) "Barge line, towing, and other water transportation company" means any
10 resident or nonresident company, whether domiciled in this state or outside this state,
11 whose boats, barges, or other watercraft either owned or leased are engaged in the
12 business of water transportation as a common, contract, or private carrier over the
13 inland waterways of this state on a regular basis. Excluded from this definition are
14 supply vessels, overnight leisure passenger vessels, and crew vessels.
15 (2) "Company" shall have the same meaning as provided for in R.S.
16 47:1851(C).
17 (3) "Immovable property" shall have the same meaning as provided for in
18 R.S. 47:1851(H).
19 (4) "Major movable property of a barge line, towing, and other water
20 transportation company" means all movable and regularly moved boats, barges, and
21 other watercraft and floating equipment and similar things which have not the
22 character of immovable property, either owned or leased for a definite and specific
23 term; but not including other movable property of a barge line, towing, and other
24 water transportation company. Motor vehicles or property specifically exempt by
25 law shall not be included within this definition.
26 (5) "Other movable property of a barge line, towing, and other water
27 transportation company" means all other property, corporeal or incorporeal, not
28 included within the definition of "immovable property" or "major movable property"
29 in Paragraph (2) of this Subsection and not immovable by nature or by disposition
Page 2 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1291 ORIGINAL
HB NO. 753
1 of law, which are so owned, leased, and so operated or used, including, but not
2 limited to, material and supplies, inventories, fuel, leased rail, tools, furniture and
3 fixtures, machinery, scales, pumps, water wells, communication equipment used
4 solely in an enterprise and not available to the public, landing piers, docks, and all
5 similar equipment. Any property specifically exempt by law shall not be included
6 within this definition.
7 B. Pursuant to the authority provided for in Article VII, Section 18(A) of the
8 Constitution of Louisiana, barge line, towing, and other water transportation
9 companies are hereby defined not to be public service properties and their property
10 except land shall be assessed at fifteen percent of fair market value.
11 C.(1) Notwithstanding any other provision of this Part or any other law to the
12 contrary, the Louisiana Tax Commission shall apportion the estimated value of the
13 property of a barge line, towing, and other water transportation company which shall
14 be subject to assessment by assessors in this state by the percentage of miles traveled
15 by water by company property within this state divided by the miles traveled by
16 water everywhere; provided that the Louisiana Tax Commission shall adjust such
17 factor if it determines that its use does not accurately reflect the an estimate of the
18 value assignable to company property within this state.
19 (2) The estimated value of all lands owned by a barge line, towing, and other
20 water transportation company in this state shall be deducted from the total estimated
21 value apportioned by the Louisiana Tax Commission and shall be assessed by the
22 assessor in which the land is located. In addition, only the estimated value of major
23 movable property owned or used in this state in interstate or interparish operations
24 shall be allocated by the Louisiana Tax Commission.
25 (3) In any dispute as to the correctness or legality of an assessment, there
26 shall be a rebuttable presumption that the allocation of estimated value of property
27 by the Louisiana Tax Commission pursuant to this Section is the proper allocation
28 of the value of such property.
Page 3 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1291 ORIGINAL
HB NO. 753
1 D.(1) Major movable or other movable property owned or used in Louisiana
2 by a barge line or towing company not a resident of, nor domiciled in Louisiana, and
3 having no agent or office in Louisiana shall be allocated for the purpose of ad
4 valorem taxation to the local taxing unit in which the company has its primary
5 business connections. Any value not allocated to any other parish shall be allocated
6 to East Baton Rouge Parish. Business connections shall include but shall not be
7 limited to use of port facilities, repair facilities, storage facilities, and the like. The
8 Louisiana Tax Commission may adopt rules and regulations to further define
9 business connections, and define primary business connections.
10 (2) For those companies not provided for in Paragraph (1) of this Subsection,
11 major movable or other movable property owned or used in Louisiana by a company
12 not a resident of, nor domiciled in Louisiana, and having no agent or office in this
13 state shall be allocated to East Baton Rouge Parish; provided, that in the event an
14 assessor shall certify to the tax commission that, as of January first, certain
15 identifiable major movables were present in his parish, the tax commission shall
16 allocate the value of that major movable to the certifying parish.
17 (3) Major movable or other movable property owned or used in Louisiana by
18 a company having an agent or office in this state shall be allocated to the taxing unit
19 in which that agent or office is located.
20 Section 2. R.S. 47:1851(B) and (Q) and 1855(G) and (H) are hereby repealed in their
21entirety.
22 Section 3. This Act shall become effective on January 1, 2016.
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.
Page 4 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1291 ORIGINAL
HB NO. 753
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
Page 5 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1291 ORIGINAL
HB NO. 753
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))
Page 6 of 6
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.