SLS 15RS-195 REENGROSSED
2015 Regular Session
SENATE BILL NO. 78
BY SENATOR MILLS
TAX/TAXATION. Provides the information to be submitted to the legislative fiscal
information for the review of instruments relative to tax exemptions, exclusions, deductions,
and credits.
1 AN ACT
2 To enact Chapter 21 of Title 24 of the Louisiana Revised Statutes of 1950, to be comprised
3 of R.S. 24:991 through 992, relative to tax exemptions, exclusions, deductions, and
4 credits against state tax; to provide that the author of an instrument, or the proponent
5 of the instrument on the author's behalf, shall submit information regarding the
6 economic effects of the instrument; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 24:991 through 992 are hereby enacted to read as follows:
9 CHAPTER 21. EXEMPTION REVIEW CONF ERENCE
10 §991. Definitions
11 As used in this Chapter, the following terms shall have the following
12 meanings unless another meaning is clearly required by its context:
13 (1) "Tax exemption" or "exemption" means and includes any tax
14 exemption, exclusion, deduction, or credit against state tax.
15 (2) "Tax exemption instrument" means any bill that enacts, amends, or
16 renews an existing tax exemption, or any joint resolution that adds a new
17 exemption, or amends or renews an existing tax exemption in the Constitution
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1 of Louisiana, if such instrument would have the effect of materially reducing
2 state revenues.
3 §992. Tax exemption instrument review and recommendation
4 A. Each tax exemption instrument required to be prefiled shall be
5 prefiled with an Exemption Explanatory Note attached to the instrument
6 prepared by the author, or by a proponent of the instrument on the author's
7 behalf, relative to the economic effects of the enactment of the legislative
8 instrument. The Exemption Explanatory Note shall include the following:
9 (1) The total decrease in taxes, fees, charges, or other revenue estimated
10 over the five ensuing fiscal years from the instrument's effective date.
11 (2) The state's revenue loss ratio; that is, the amount of money to be
12 gained by the state compared to the cost of the benefit granted.
13 (3) The effect on household earnings, employment, and value added in
14 Louisiana.
15 (4) An indication of which beneficial economic actions will be
16 incentivized by the instrument.
17 (5) Data indicating whether the same or similar provisions have been
18 enacted in other states or territories of the United States or other nations.
19 (6) The methodology and assumptions utilized to produce the
20 information in the report.
21 B. The chief clerical officer of the house of the legislature in which the
22 instrument and Exemption Explanatory Note were filed shall provide these
23 documents to the legislative fiscal officer. The legislative fiscal officer or the
24 economist for the legislative fiscal office shall review the tax exemption
25 instrument and the Exemption Explanatory Note for information which may be
26 used in the fiscal note for the instrument.
27 Section 2. This Act shall become effective upon signature by the governor or, if not
28 signed by the governor, upon expiration of the time for bills to become law without signature
29 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
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1 vetoed by the governor and subsequently approved by the legislature, this Act shall become
2 effective on the day following such approval.
The original instrument was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Martha Hess.
DIGEST
SB 78 Reengrossed 2015 Regular Session Mills
Proposed law defines "tax exemption", and "tax exemption instrument".
Proposed law requires the author of a tax exemption instrument, or the proponent of the
instrument on the author's behalf to submit an Exemption Explanatory Note to include the
following:
(1)The total decrease in taxes, fees, charges or other revenue estimated over the five
ensuing fiscal years from the instrument's effective date.
(2)The state's revenue loss ratio; that is, the amount of money to be gained by the state
compared to the cost of the benefit granted.
(3)The effect on household earnings, employment, and value added in Louisiana.
(4)An indication of which beneficial economic actions will be incentivized by the
instrument.
(5)Data indicating whether the same or similar provisions have been enacted in other
states or territories of the United States or other nations.
(6)The methodology and assumptions utilized to produce the information in the report.
Proposed law provides that the chief clerical officer of the house of the legislator in which
the instrument and the exemption explanatory note were filed shall provide these documents
to the legislative fiscal officer. The legislative fiscal officer or the economist for the
legislative fiscal officer shall review the instrument and the note for information which may
be used in the fiscal note for the instrument.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 24:991-992)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Prohibits an economist from being appointed to or retained by the Exemption
Review Conference unless the legislature has appropriated funds to
adequately compensate such economist for any services required by the
proposed law.
2. Requires the Exemption Review Conference to meet to review and prepare
a tax exemption analysis report on each tax exemption existing prior to July
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1, 2016, by no later than September 1, 2016, and for the tax committees to
meet within 60 days of its receipt and review and amend it.
3. Adds the Legislative Auditor or his designee as a member of the Conference.
Committee Amendments Proposed by Senate Committee on Finance to the
engrossed bill
1. Deletes provisions relative to Exemption Review Conference, membership,
appointment or retention of economist, and official exemption analyses.
2. Provides that the Exemption Explanatory Note shall be provided to the
legislative fiscal officer for information which may be used by the legislative
fiscal officer or the economist for the legislative fiscal office in the fiscal
note for the bill.
3. Changes effective date to signature of the governor.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.