Louisiana House Bill HB477

Louisiana 2018 Regular Session

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

Caption

(Constitutional Amendment) Provides for ad valorem property tax exemptions (OR SEE FISC NOTE LF RV See Note)

Impact

If passed, HB 477 would significantly impact the way property taxes are calculated and applied to businesses in Louisiana, primarily within the manufacturing sector. Currently, the state allows a five-year exemption for new manufacturing establishments, renewable for another five years. The bill will extend this initial exemption term to seven years and allows for a potential extension beyond seven years with proper legislative backing, promoting ongoing economic development and support for manufacturing investments.

Summary

House Bill 477 proposes a constitutional amendment aimed at restructuring the framework for ad valorem property tax exemptions in Louisiana. The bill seeks to amend Article VII, Section 21(F) and add Section 21(O) to the state constitution, thereby granting exemptions to property of manufacturing establishments and properties bound by cooperative endeavor agreements that facilitate payments in lieu of taxes. The bill allows specific terms around these exemptions, including duration and conditions for approval, particularly emphasizing the necessity of legislative approval for certain projects.

Sentiment

The sentiment surrounding HB 477 appears to be generally supportive among stakeholders in the manufacturing sector and government representatives who view it as a means to enhance economic growth. However, some local governance advocates express concerns that broadening tax exemptions may limit the revenue available for essential community services, indicating a divided perspective on the potential benefits versus risks of such financial concessions.

Contention

Notably, the bill has sparked a debate about the degree of authority afforded to local governments in negotiating tax-related agreements. Critics argue that the new provisions may prioritize state interests at the expense of local autonomy, potentially undermining the ability of local governments to design tax structures that best suit their communities. This centralization of tax exemption authority could become a contentious point as the implications are further examined and debated in legislative circles.