HLS 18RS-480 ORIGINAL
2018 Regular Session
HOUSE BILL NO. 476
BY REPRESENTATIVE IVEY
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Establishes an ad
valorem tax exemption for property subject to a cooperative endeavor agreement
requiring the property owner to make payments in lieu of taxes
1 A JOINT RESOLUTION
2Proposing to add Article VII, Section 21(O) of the Constitution of Louisiana, to provide for
3 ad valorem property tax exemptions; to establish an exemption for certain property
4 subject to a cooperative endeavor agreement requiring payments in lieu of taxes; to
5 provide for requirements and limitations; to provide for submission of the proposed
6 amendment 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
10amend Article VII, Section 21(O) 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 (O) Property that is subject to a cooperative endeavor agreement between the
17 owner and one or more taxing authorities which agreement requires the property
18 owner to make payments in lieu of taxes as provided by law. The exemption shall
19 not exceed ten years. However, an exemption may exceed the ten year limitation if
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-480 ORIGINAL
HB NO. 476
1 recommended by the governor, and to the extent of the governor's recommendation.
2 Property eligible for the exemption shall be as provided in Subparagraph (1) of this
3 Paragraph.
4 (1)(a) Property of a new manufacturing establishment or an addition to an
5 existing manufacturing establishment.
6 (b) A property subject to a cooperative endeavor agreement which has been
7 approved by a committee of the legislature, as provided by law.
8 (2) The exemption authorized under this Paragraph shall be to the extent
9 agreed to and provided for in the cooperative endeavor agreement. All property
10 exempted shall be listed on the assessment rolls and submitted to the Louisiana Tax
11 Commission.
12 (3) Except as otherwise provided herein, property subject to a contract of
13 exemption pursuant to Paragraph (F) of this Section shall be ineligible for the
14 exemption authorized under this Paragraph. However, an ad valorem taxing
15 authority may negotiate and enter into a cooperative endeavor agreement with a
16 property owner for payments in lieu of ad valorem taxes during the first two years
17 of a contract of exemption pursuant to Paragraph (F) of this Section as provided by
18 law.
19 (4) The terms "manufacturing establishment" and "addition" shall have the
20 same meanings ascribed to them in Paragraph (F) of this Section.
21 (5) Before the execution of a cooperative endeavor agreement, the governing
22 authority of the taxing authority shall adopt a resolution with respect to its intention
23 to execute the agreement, which resolution may be considered for adoption only after
24 a public hearing held in accordance with the same public notice required for an
25 increase in a millage rate without voter approval as provided in Section 23(C) of this
26 Article.
27 Section 2. Be it further resolved that this proposed amendment shall be submitted
28to the electors of the state of Louisiana at the statewide election to be held on November 6,
292018.
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are additions. HLS 18RS-480 ORIGINAL
HB NO. 476
1 Section 3. Be it further resolved that on the official ballot to be used at the election,
2there shall be printed a proposition, upon which the electors of the state shall be permitted
3to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
4follows:
5 Do you support an amendment to grant an ad valorem property tax
6 exemption for property that is subject to an agreement with local government
7 allowing the property owner to make payments instead of property taxes?
8 (Adds Article VII, Section 21(O))
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 476 Original 2018 Regular Session Ivey
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 exemption shall not exceed 10 years in
duration. However, an exemption may exceed the 10 year limitation if recommended by the
governor, and to the extent of the governor's recommendation.
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. 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 Nov. 6, 2018.
(Adds Const. Art. VII, §21(O))
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