HLS 17RS-935 RE-REENGROSSED
2017 Regular Session
HOUSE BILL NO. 444
BY REPRESENTATIVES SEABAUGH, BROADWATER, AND GLOVER
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Establishes an ad
valorem tax exemption for property subject to a cooperative endeavor agreement
requiring the property owner make payments in lieu of taxes
1 A JOINT RESOLUTION
2Proposing to add Article VII, Section 21(N) of the Constitution of Louisiana, to provide for
3 ad valorem tax exemptions; to establish an exemption for certain property subject to
4 a cooperative endeavor agreement requiring payments in lieu of taxes; to provide for
5 requirements and limitations; to provide for submission of the proposed amendment
6 to the electors; and to provide for related matters.
7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
8elected to each house concurring, that there shall be submitted to the electors of the state of
9Louisiana, for their approval or rejection in the manner provided by law, a proposal to add
10Article VII, Section 21(N) of the Constitution of Louisiana, to read as follows:
11 §21. Other Property Exemptions
12 Section 21. In addition to the homestead exemption provided for in Section
13 20 of this Article, the following property and no other shall be exempt from ad
14 valorem taxation:
15 * * *
16 (N) Property that is subject to a cooperative endeavor agreement, as provided
17 by law and this constitution, between the owner and one or more taxing authorities
18 which agreement requires the property owner to make payments in lieu of taxes as
19 provided by law. Property eligible for this exemption shall be as provided in
20 Subparagraph(1) of this Paragraph.
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1 (1)(a) Property of a new manufacturing establishment or an addition to an
2 existing manufacturing establishment.
3 (b) Other property, subject to a cooperative endeavor agreement which has
4 been approved by a committee of the legislature, as provided by law.
5 (2) The exemption authorized under this Paragraph shall be to the extent
6 agreed to and provided for in the cooperative endeavor agreement. All property
7 exempted shall be listed on the assessment rolls and submitted to the Louisiana Tax
8 Commission.
9 (3) Except as otherwise provided herein, property that has been subject to a
10 contract of exemption as provided in Paragraph (F) of this Section shall be ineligible
11 for the exemption authorized under this Paragraph. Notwithstanding the foregoing,
12 an ad valorem taxing authority may negotiate and enter into a cooperative endeavor
13 agreement with a property owner for a payment in lieu of ad valorem taxes during
14 the first two years of a contract of exemption allowed by Paragraph (F) of this
15 Section as provided by law.
16 (4) The terms "manufacturing establishment" and "addition" shall have the
17 same meanings ascribed to them in Paragraph (F) of this Section.
18 Section 2. Be it further resolved that this proposed amendment shall be submitted
19to the electors of the state of Louisiana at the statewide election to be held on October 14,
202017.
21 Section 3. Be it further resolved that on the official ballot to be used at the election,
22there shall be printed a proposition, upon which the electors of the state shall be permitted
23to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
24follows:
25 Do you support an amendment to grant a property tax exemption for property
26 that is subject to an agreement with local government allowing the property
27 owner to make payments instead of property taxes?
28 (Adds Article VII, Section 21(N))
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HB NO. 444
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 444 Re-Reengrossed 2017 Regular Session Seabaugh
Abstract: Establishes an ad valorem tax exemption for property that is subject to a
cooperative endeavor agreement that requires the property owner to make payments
in lieu of ad valorem taxes.
Present constitution authorizes the imposition of ad valorem property taxes by local
governments, school boards, and other special districts.
Present constitution authorizes a variety of exemptions from ad valorem tax.
Proposed constitutional amendment changes present constitution by establishing an
exemption for property subject to a cooperative endeavor agreement that requires the
property owner to make payments in lieu of the ad valorem taxes imposed by a taxing
authority that is a party to the agreement. The extent of the exemption shall be as provided
for in the agreement.
Proposed constitutional amendment limits eligibility for the exemption to either a
manufacturing establishment that qualifies for the industrial tax exemption, or a property
subject to a cooperative endeavor agreement that has been approved by a legislative
committee as provided by law. Proposed constitutional amendment further prohibits
eligibility for this exemption for a manufacturing establishment that has a contract for the
industrial tax exemption, unless it is within the first two years of that contract.
Proposed constitutional amendment requires that exempt properties be listed on the
assessment rolls and that information concerning those properties be submitted to the La.
Tax Commission.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held October 14, 2017.
(Adds Const. Art. VII, §21(N))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the engrossed bill:
1. Add technical changes to the ballot language.
The House Floor Amendments to the reengrossed bill:
1. Limit eligibility for the exemption to either a manufacturing establishment that
qualifies for the industrial tax exemption, or a property subject to a cooperative
endeavor agreement that has been approved by a legislative committee. Further,
prohibits eligibility for this exemption for a manufacturing establishment that has
a contract for the industrial tax exemption, unless it is within the first two years
of that contract.
2. Limit the exemption to the amount agreed upon in the cooperative endeavor
agreement.
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3. Add a requirement that exempt properties be listed on the assessment rolls and
information concerning those properties is required to be submitted to the La.
Tax Commission.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.