Constitutional amendment to phase-in over a four-year period an exemption from ad valorem property taxes for inventory held by manufacturers, distributors, and retailers, and natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (2/3 - CA13s1(A)) (1/1/16)
Impact
If enacted, SB 141 would result in a significant change to how property taxes apply to inventory and natural gas within Louisiana. Currently, property tax exemptions exist for certain goods, but this amendment would expand those exemptions dramatically. Supporters argue that removing the tax burden on this inventory will incentivize businesses to invest and expand operations in the state, thereby bolstering economic development and job creation.
Summary
Senate Bill 141 proposes a constitutional amendment that aims to phase in an exemption from ad valorem property taxes for specific types of inventory held by manufacturers, distributors, and retailers, as well as for natural gas used in storage services. The amendment outlines a gradual increase in the exemption percentage over a four-year timeline, starting at 25% in 2016 and reaching 100% by 2019. This change seeks to stimulate economic growth by easing the tax burden on businesses managing significant inventory and natural gas resources.
Sentiment
The sentiment surrounding SB 141 appears to be supportive among business groups and industries that would benefit from the tax exemption. However, there are likely concerns from local governments regarding the long-term implications of reduced tax revenue. While proponents promote the bill as an economic booster, skeptical voices may question the potential loss of revenue for local services and infrastructure that could result from increased exemptions.
Contention
Notable points of contention include the balance between fostering economic growth and maintaining adequate funding for local governments. Opponents might assert that while the tax exemptions could benefit certain business sectors, they also risk shifting the fiscal burden onto other areas, potentially leading to cuts in essential services. The debate may center on whether these tax breaks will lead to significant economic benefits that justify the loss of property tax revenue.
(Constitutional Amendment) Adds ad valorem property tax exemptions for certain inventory held by manufacturers, distributors, and retailers and natural gas used in providing natural gas storage services or operating natural gas storage facilities
Removes the refundable tax credit for ad valorem property taxes paid on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (gov sig)
Constitutional amendment to exempt from ad valorem property taxes inventory held by manufacturers, distributors, and retailers, to be submitted to electors of the state if a certain law is enacted. (2/3-CA13s1(A))(1/1/16)
Constitutional amendment to exempt from ad valorem property taxes inventory held by manufacturers, distributors, and retailers if the taxing authority accepts a payment in lieu of the property taxes which would otherwise be due on such inventory as may be provided by law for such purpose. (2/3-CA13s1(A))(1/1/16) (OR SEE FISC NOTE LF RV)
Constitutional amendment to exempt from ad valorem property taxes inventory held by manufacturers, distributors, and retailers and to prohibit adjustment of millages because of the implementation of the exemption. (2/3-CA13s1(A)) (1/1/16) (OR -$517,000,000 LF RV See Note)
Constitutional amendment to phase out the ad valorem tax on inventory, reduce the maximum amount of the industrial property tax exemption, and provide for funding for local government. (2/3 - CA13s1(A))
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.