Constitutional amendment to prohibit contracts under the industrial property tax exemption program from exempting millages related to school funding. (2/3 - CA13s1(A)) (EG INCREASE LF RV See Note)
Impact
If enacted, SB 26 would significantly impact the financial landscape for local school boards by ensuring they are not deprived of essential funding through tax exemptions granted to manufacturing entities. This amendment is set to prohibit contracts entered into after January 1, 2019, from offering exemptions on school taxes, thus reinforcing the funding mechanisms that support local education. The bill maintains the ability for manufacturers to benefit from tax exemptions while ensuring that educational funding remains intact.
Summary
Senate Bill 26, introduced by Senator Morrell, proposes a constitutional amendment in Louisiana that aims to modify the existing industrial property tax exemption program. Currently, the State Board of Commerce and Industry can enter into contracts that exempt new and expanding manufacturing facilities from ad valorem taxes. The major change proposed by SB26 is the prohibition of exempting any portion of ad valorem taxes dedicated to school funding, specifically those imposed by or on behalf of city and parish school boards.
Sentiment
The sentiment surrounding SB 26 reflects a significant divide among legislators. Proponents argue that safeguarding school funding from tax exemptions is a vital step towards ensuring educational resources remain available for local students. Opponents, however, express concern that this limitation on tax exemptions could deter manufacturing companies from establishing or expanding in Louisiana, potentially harming economic development and job creation in the state.
Contention
The central contention in the debates over SB 26 concerns the balance between encouraging business development and ensuring sufficient funding for public education. Supporters of the bill argue that exempting school taxes from industrial tax incentives is necessary to protect local educational resources. In contrast, critics warn that such restrictions might negatively impact Louisiana's competitive edge in attracting manufacturing investments, potentially diminishing the economic growth that such establishments can bring.
Constitutional amendment to phase out the ad valorem tax on inventory and to reduce the industrial property tax exemption on millages related to school funding. (2/3 - CA13sl(A)) (OR DECREASE LF RV See Note)
Constitutional amendment to require local government approval of the industrial property tax exemption. (2/3 - CA13s1(A)) (EG SEE FISC NOTE LF RV See Note)
Constitutional amendment to phase out the tax on inventory and establish the maximum allowable exemption for the industrial property tax exemption program. (2/3 - CA13s1(A)) (EG SEE FISC NOTE GF RV See Note)
Constitutional amendment to provide for local governmental input in the Industrial Tax Exemption Program. (2/3 - CA13s1(A)) (EG SEE FISC NOTE LF RV See Note)
Constitutional amendment to provide that all 10-Year Industrial Exemption contracts renewed after 12/31/2023 shall be renewed only on condition that the exemption shall not apply to taxes levied for purposes related to elementary and secondary education. (2/3-CA13s1(A)) (OR INCREASE LF RV See Note)
Constitutional amendment to phase out the ad valorem tax on inventory, reduce the maximum amount of the industrial property tax exemption, and provide for funding for local government. (2/3 - CA13s1(A))
Constitutional amendment to provide that all 10-Year Industrial Exemption contracts entered into after 12/31/23 shall be entered into only on condition that the exemption shall not apply to taxes levied for purposes related to elementary and secondary education. (2/3-CA13s1(A)) (OR INCREASE LF RV See Note)