Louisiana House Bill HB201

Louisiana 2018 Regular Session

• Introduced: 2/28/18
• Refer: 2/28/18
• Refer: 3/12/18

Caption

(Constitutional Amendment) Establishes an ad valorem tax exemption for property subject to a cooperative endeavor agreement that requires the property owner to make payments in lieu of taxes (OR SEE FISC NOTE LF RV See Note)

Impact

The expected impact of HB 201 on state laws includes altering the existing framework surrounding property tax exemptions. Specifically, it limits eligibility for the exemption to manufacturing establishments that qualify for the industrial tax exemption. The bill would also ensure that all exempt properties are listed on assessment rolls, providing transparency and accountability in how these exemptions are administered. This shift aims to create a more favorable tax environment for new and expanding manufacturing operations.

Summary

House Bill 201 proposes a constitutional amendment to establish an ad valorem tax exemption for properties that are the subject of cooperative endeavor agreements. Under this bill, property owners would be required to make payments in lieu of ad valorem taxes to local taxing authorities. The purpose of this amendment is to provide financial relief to qualifying manufacturing establishments and other specified properties, potentially stimulating economic development within the state.

Sentiment

Discussions around HB 201 have generally focused on its potential benefits in fostering economic growth and attracting new businesses to the state. Supporters argue that the bill provides essential incentives for manufacturing sectors that can drive job creation and investment. Conversely, there are concerns regarding the implications of tax exemptions on local government revenues, as it may limit funds available for public services if significant properties are exempted from property taxes.

Contention

One of the notable points of contention surrounding HB 201 is the extent to which it may favor large manufacturing entities while potentially overlooking the needs and revenues of local governments. Critics express concerns that although the bill is designed to promote economic development, it might disproportionately benefit certain businesses at the expense of municipal funding, raising questions about fairness in the tax system. Furthermore, the requirement for properties to participate in cooperative endeavor agreements adds another layer of complexity to the approval process, which may raise further regulatory hurdles.