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)
Impact
If enacted, SB 85 will modify the existing structure of property taxation by specifically targeting inventory. The measure likely aims to stimulate the economy by making it less costly for businesses to maintain inventory in Louisiana, thereby promoting local manufacturing and distribution activities. Additionally, the amendment provides that a decline in tax collection resulting from the exemption cannot lead to an increase in millage rates, further protecting businesses from potential tax hikes related to inventory valuation changes.
Summary
Senate Bill 85 proposes a constitutional amendment that aims to exempt from ad valorem property taxes the inventory held by manufacturers, distributors, and retailers. This bill seeks to alleviate the tax burden on these businesses, potentially encouraging economic growth and investment in the state. By exempting inventory from property taxes, the bill aligns with efforts to enhance the competitiveness of Louisiana’s businesses, particularly in the manufacturing and distribution sectors.
Sentiment
Discussion around SB 85 appears to reflect a generally positive sentiment from business communities who would benefit from the exemption. Advocates argue that the measure supports local economic development by lowering operational costs. However, potential opposition might emerge from fiscal conservatives concerned about the long-term revenue implications of such tax exemptions for state and local governments.
Contention
Notably, a point of contention may arise regarding the balancing of tax revenue needs against economic incentives for businesses. Critics could argue that while the exemption may assist businesses, it places a strain on public resources by reducing overall tax revenues. This could potentially affect funding for public services, raising questions about fiscal responsibility and the equity of tax burdens among different entities within the state.
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 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)
Constitutional amendment to phase out the ad valorem tax on inventory and to reduce the industrial property tax exemption on millages related to school funding. (2/3 - CA13sl(A)) (OR DECREASE LF RV See Note)
(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
Constitutional amendment to prohibit contracts under the industrial property tax exemption program from exempting millages related to school funding. (2/3 - CA13s1(A)) (EG INCREASE LF RV See Note)
Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.
Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.
Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.
Increases gross income tax relief based on rent constituting property taxes for residential tenants and establishes refundable gross income tax credit in place of gross income tax deduction for residential tenants.