GREEN SHEET REDIGEST
HB 893 2018 Regular Session Connick
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/AD VALOREM TAX. Provides with respect to the development of appraisals
and assessments of public service properties by the La. Tax Commission.
DIGEST
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
allocation of assessed value, 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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the reengrossed bill
1. Makes technical changes.
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Prepared by James Benton.