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 Engrossed 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 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))