HLS 18RS-2236 REENGROSSED
2018 Regular Session
HOUSE BILL NO. 893 (Substitute for House Bill No. 382 by Representative Connick)
BY REPRESENTATIVE CONNICK
TAX/AD VALOREM TAX: Provides with respect to the development of appraisals and
assessments of public service properties by the La. Tax Commission
1 AN ACT
2To amend and reenact R.S. 47:1853(B)(3) and 1855(E), relative to ad valorem property tax
3 assessments for public service properties; to require the retention of certain
4 information relative to appraisals and allocations of value; and to provide for related
5 matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:1853(B)(3) and 1855(E) are hereby amended and reenacted to
8read as follows:
9 §1853. Appraisal of public service properties
10 * * *
11 B.
12 * * *
13 (3) Notwithstanding any other law to the contrary, for the years 1993 and
14 1994, the commission shall allocate the value of all inventories of natural gas owned
15 by a pipeline company in this state to each tax jurisdiction in which the inventories
16 are located according to its long-held administrative construction and interpretation
17 of the law. At the expiration of the time provided herein, the commission shall
18 develop a fair, equitable, and consistent system of valuation of such inventories for
19 all parishes affected by any revisions to ad valorem property tax procedures,
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-2236 REENGROSSED
HB NO. 893
1 including but not limited to the parishes of Bienville, East Carroll, Lincoln, and West
2 Carroll.
3 (3) The commission shall retain in the record of the appraisal the rationale
4 for the determination of the appraisal approach utilized in the valuation.
5 * * *
6 §1855. Allocation of assessed value
7 * * *
8 E. Provided, however, that the The Louisiana Tax Commission shall
9 eliminate or adjust one or more of the above factors in any instance in which the use
10 thereof does not accurately reflect the fair market value assignable to company
11 property within this state. In such instance, the commission shall retain in the record
12 of the appraisal the analysis used to make the determination that one or more of the
13 factors established in Subsection D of this Section where not utilized in the appraisal.
14 * * *
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 893 Reengrossed 2018 Regular Session Connick
Abstract: Requires retention of records by the La. Tax Commission concerning its
appraisals of public service properties.
Present constitution and present law require that the La. Tax Commission (commission)
assess public service properties for purposes of property tax. Public service properties
include airlines, barge lines, electric companies, transportation companies, gas companies,
insurance companies, and financial institutions.
Present law requires the commission to annually appraise each public service company by
September 1
st
, based on information provided by the property owner. The commission uses
the following techniques to appraise the fair market value of these properties: market
approach, cost approach, and income approach. All public service properties of the same
nature and kind are required to be appraised in the same manner.
Proposed law retains present law and adds a requirement that the commission maintain
within its record for each appraisal, the rationale for the determination of the appraisal
approach utilized in the valuation.
Present law provides that for purposes of allocation of value of inventories of natural gas
owned by a La. pipeline company, the assessments for 1993 and 1994 in the parishes of
Bienville, East Carroll, Lincoln, West Carroll, and other parishes shall allocate the value of
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-2236 REENGROSSED
HB NO. 893
this property to each tax jurisdiction in which the inventories are located according to
long-held administrative construction and interpretation of the law. Thereafter, the La.
Commission is required to develop a fair, equitable, and consistent system of valuation of
those inventories.
Proposed law repeals obsolete provisions of present law.
Present law establishes specific factors to be used in the allocation of assessed value of
public service properties which involve property used both inside and outside of La. The
commission has discretion to utilize specific factors as it deems appropriate.
Proposed law retains present law and requires that the commission retain in its record of
each appraisal, the analysis used to make a determination to use certain factors in favor of
other factors.
(Amends R.S. 47:1853(B)(3) and 1855(E))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.