The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Riley Boudreaux.
DIGEST
SB 257 Original 2015 Regular Session Thompson
Present law creates a "The Tax Increment Development Corporation" [TID] in each parish and
municipality in the state which may be activated by an ordinance or resolution of the governing
authority of the parish or municipality. The TID is authorized to fund a tax increment development
project with ad valorem property tax increments, including the authority to issue indebtedness.
Present law authorizes entities defined as "local governmental subdivisions" to implement ad
valorem tax and sales tax increment financing and to issue revenue bonds backed by a pledge of the
tax increments to finance all or any part of an "economic development project".
Present law authorizes such "local governmental subdivisions" to enter into a joint venture or
cooperative endeavor for a public purpose with a federal, state, or local governmental agency or with
a private or public firm, partnership, corporation, or other entity.
Present law authorizes such "local governmental subdivisions" to issue revenue bonds and other
bonds and forms of indebtedness.
Present law authorizes such "local governmental subdivisions" to levy an ad valorem tax of up to
5 mills and two percent of sales tax after the governing authority of the district gives notice and
meets in open and public session to hear any objections and the favorable vote of a majority of the
electors of the district voting in an election.
Such tax increase may be levied only after the governing authority of the district has called a special
election submitting the proposition for the levy of such taxes to the qualified electors of the district
and the proposition has received the favorable vote of a majority of the electors voting in the
election; however, in the event there are no qualified electors in the district as certified by the
registrar of voters, no such election shall be required.
Proposed law defines any Tax Increment Development Corporation [TID] activated in a municipality
with a population of not less than 3,300 and not more than 3,395 according to the most recent federal
decennial census as an "issuer" and a "local governmental subdivision" for purposes of utilizing such
TIF authority in present law.
Proposed law specifically grants to such TID all the ad valorem, sales tax, and occupancy tax
increment finance and bonding authority, and the ad valorem and sales tax levy authority granted to
"local governmental subdivisions" as described above, and authorizes the TID in addition to any tax
increment community development projects of such TID to undertake an "economic development
project" within the meaning provided for in present law. Authorizes the TID to restrict any powers, authorities, or duties granted under present law to a
geographically defined district initiated by the chief executive officer or mayor of such municipality
or to a tax increment community development area established by ordinance or resolution of the TID.
The TID may pledge any taxes collected under the authority of the proposed law to tax increment
community development projects or any economic development project in furtherance of the
purposes of the TID. Such financing may include but shall not be limited to loans, mortgages, the
issuance of bonds, or the issuance of certificates of indebtedness.
Proposed law must be liberally construed to effect its purposes.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 33:9038.31(2) and (3); adds R.S. 33:9038.68)