HLS 17RS-245 ENGROSSED
2017 Regular Session
HOUSE BILL NO. 180
BY REPRESENTATIVE CARMODY
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Provides with respect
to the ad valorem property tax exemption for certain manufacturers
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 21(F) of the Constitution of Louisiana, to provide
3 for ad valorem property tax exemptions; to provide with respect to the exemption for
4 certain property of manufacturing establishments; to provide relative to authorization
5 to approve exemptions; to require the legislature to provide by law for certain
6 provisions concerning the exemption; to provide for effectiveness; to provide for
7 submission of the proposed amendment to the electors; and to provide for related
8 matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 21(F) of the Constitution of Louisiana, to read as follows:
13 §21. Other Property Exemptions
14 Section 21. In addition to the homestead exemption provided for in Section
15 20 of this Article, the following property and no other shall be exempt from ad
16 valorem taxation:
17 * * *
18 (F) Notwithstanding any contrary provision of this Section, the State Board
19 of Commerce and Industry or its successor, with the approval of the governor, may
20 enter into contracts for the there is hereby authorized an exemption from ad valorem
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-245 ENGROSSED
HB NO. 180
1 taxes for the property of a new manufacturing establishment or an addition to an
2 existing manufacturing establishment, on such terms and conditions as the board,
3 with the approval of the governor, deems in the best interest of the state.
4 (1) The exemption shall be for an initial term of no more than five calendar
5 years, and may be renewed for an additional five years. All property exempted shall
6 be listed on the assessment rolls and submitted to the Louisiana Tax Commission or
7 its successor, but no taxes shall be collected thereon during the period of exemption.
8 (2) The terms "manufacturing establishment" and "addition" as used herein
9 mean a new plant or establishment or an addition or additions to any existing plant
10 or establishment which engages in the business of working raw materials into wares
11 suitable for use or which gives new shapes, qualities or combinations to matter which
12 already has gone through some artificial process.
13 (3) The legislature by law shall establish a program for implementation and
14 governance of this exemption, which may include requirements for application for
15 and approval of the granting of an exemption, and additional eligibility requirements
16 restricted to those that concern expectations for returns on investment for local
17 governments. Any law establishing a procedure concerning the authority to approve
18 an exemption, once enacted, shall not be changed except by specific legislative
19 instrument which receives a favorable vote of two-thirds of the elected members of
20 each house of the legislature.
21 * * *
22 Section 2. Be it further resolved that this proposed amendment shall be submitted
23to the electors of the state of Louisiana at the statewide election to be held on October 14,
242017.
25 Section 3. Be it further resolved that on the official ballot to be used at the election,
26there shall be printed a proposition, upon which the electors of the state shall be permitted
27to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
28follows:
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are additions. HLS 17RS-245 ENGROSSED
HB NO. 180
1 Do you support an amendment to require that the legislature provide by law
2 for a program governing various aspects of the ad valorem tax exemption for
3 new manufacturing establishments or additions to such an establishment, and
4 to remove the specific constitutional authority for approval of these
5 exemptions by the governor and the State Board of Commerce and Industry?
6 (Amends Art. VII, Sec. 21(F))
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 180 Engrossed 2017 Regular Session Carmody
Abstract: Requires the legislature to provide by law for a program governing the ad
valorem tax exemption for certain property of a manufacturing establishment (ITEP)
and removes specific provisions of present constitution granting authority for
approval of the exemptions by the governor and the State Board of Commerce and
Industry.
Present constitution authorizes an ad valorem property tax exemption for new manufacturing
establishments and miscellaneous additions to existing establishments, hereinafter
(exemption). The exemption is effectuated through a contract granted by the Board of
Commerce and Industry, with the approval of the governor.
Proposed constitutional amendment removes from present constitution specific authority for
the approval of the exemptions by the governor and the State Board of Commerce and
Industry.
Proposed constitutional amendment changes present constitution by requiring the legislature
to provide by law for a program governing various aspects of the exemption, which may
include additional eligibility requirements restricted to those that concern expectations for
returns on investment for local governments. Any law establishing a procedure concerning
the authority to approve an exemption, once enacted, shall not be changed except by specific
legislative instrument which receives a favorable vote of 2/3rds of the elected members of
each house of the legislature.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Oct. 14, 2017.
(Amends Art. VII, § 21(F))
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