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, ยง21(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.
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.