The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 130 Original 2017 Regular Session Allain
Present constitution provides that all property is subject to ad valorem taxation unless specifically
exempted.
Present constitution authorizes the State Board of Commerce and Industry, with gubernatorial
approval, to enter into contracts to exempt new and expanding manufacturing facilities from ad
valorem taxation.
Proposed constitutional amendment retains the ability of the board to enter into contracts to exempt
certain manufacturing facilities from certain ad valorem taxes.
Proposed constitutional amendment beginning January 1, 2019, prohibits the board from providing
a full exemption for a manufacturing facility under a new contract or contract renewal from the
payment of ad valorem taxes imposed by or on behalf of a city, parish, or other local public school
board and requires that the manufacturing facility pay no less than the school related millages on the
value of property after ten years of use.
Proposed constitutional amendment provides that the Tax Commission establish criteria for
determining the value of property after ten years of use and that these criteria shall be uniform
throughout the state.
Proposed constitutional amendment phases in an ad valorem tax exemption for goods held in
inventory over a ten-year period completely exempting inventory from ad valorem taxation after
January 1, 2028.
Specifies submission of the amendment to the voters at the statewide election to be held on
November 6, 2018.
(Amends Const. Art. VII, Sec. 21(F); adds Const. Art. VII, Sec. 21(N))