SLS 16RS-971 ORIGINAL
2016 Regular Session
SENATE BILL NO. 442
BY SENATOR RISER
TAX/AD VALOREM. Provides for an ad valorem exemption for certain data services
facilities. (8/1/16)
1 AN ACT
2 To amend and reenact R.S. 47:4354(A)(3), relative to ad valorem taxation; to provide for a
3 targeted non-manufacturing business exemption to ad valorem taxation; to provide
4 for eligibility for certain data services facilities; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:4354(A)(3) is hereby amended and reenacted to read as follows:
7 ยง4354. Targeted non-manufacturing business
8 A targeted non-manufacturing business shall meet all of the following
9 requirements:
10 * * *
11 (3)(a) With the exception of a business providing at least fifty new
12 headquarters jobs or shared service center jobs, a business primarily engaged in retail
13 sales, real estate, professional services, natural resource extraction or exploration,
14 financial services, or venture capital funds, shall not be eligible for the program. No
15 business engaged in gaming or gambling shall be eligible for the program.
16 (b) Notwithstanding Subparagraph (a) of this Paragraph, a data services
17 facility that provides at least ten new jobs shall be eligible for the program.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 442
SLS 16RS-971 ORIGINAL
1 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Carla S. Roberts.
DIGEST
SB 442 Original 2016 Regular Session Riser
Present constitution and present law authorize political subdivisions of the state to impose
ad valorem taxes.
Present law provides for a program for the granting of contracts for ad valorem tax
exemptions by the Board of Commerce and Industry (hereinafter board) for business projects
which entail capital investments in excess of $25 million which are expected to yield
significant positive economic benefit to the state. Present law provides that the program is
administered by the Dept. of Economic Development (hereinafter department) and shall be
available and operate in all parishes, and, if applicable, municipalities and school districts
which have elected to participate therein.
Present law provides for optional participation in the program by parish governments. A
parish may choose to participate in the program and approve the granting of ad valorem tax
exemptions in the following manner:
(1)Approval of all projects recommended by the department.
(2)Approval of all projects recommended by the department which meet specific
criteria determined by the parish.
(3)Approval of all projects on a case-by-case basis.
Present law provides, however, in any parish which has elected to participate in the program,
the program shall not be operable within any municipality or school district unless the
governing authority of the municipality or school district has elected to participate in the
program on the same basis as was chosen by the parish.
Present law provides the criteria for eligibility of a business to participate in the program:
(1)A business which has at least 50% of the total annual sales from a La. site or sites is
to out-of-state customers or buyers, in-state customers or buyers but the product or
service is resold by the purchaser to an out-of-state customer or buyer for ultimate
use, or the federal government, or any combination thereof.
(2)The activities of the business at a La. site or sites include corporate headquarters,
logistics, warehousing, data center, clean technology, destination health care,
research and development, renewable energy, digital media and software
development, or other business sector targeted by the secretary as a focus of the
department's economic development efforts.
(3)The business intends to either locate a project or undertake an expansion project in
La., either of which shall involve a capital expenditure of at least $25 million by the
business or an affiliate or partner on its behalf.
Present law provides that the following types of business are ineligible for participation in
the program:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 442
SLS 16RS-971 ORIGINAL
(1)With the exception of a business providing at least 50 new headquarter jobs or shared
service center jobs, a business primarily engaged in retail sales, real estate,
professional services, natural resource extraction or exploration, financial services,
or venture capital funds.
(2)Businesses engaged in gaming or gambling.
Proposed law retains present law but provides that a data services facility that provides at
least 10 new jobs shall be eligible for the program.
Effective August 1, 2016.
(Amends R.S. 47:4354(A)(3))
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.