Louisiana Senate Bill SB294

Louisiana 2018 Regular Session

• Introduced: 3/1/18
• Refer: 3/1/18
• Refer: 3/12/18

Caption

Constitutional amendment to authorize local taxing authorities to enter into cooperative endeavor agreements to negotiate stipulated tax payments of ad valorem taxes. (2/3-CA13s1(A)) (OR SEE FISC NOTE LF RV)

Impact

If approved, SB 294 would amend Article VII of the Louisiana Constitution, which currently contains a specific list of exemptions from ad valorem taxation. This amendment stands to create a significant shift in how local governments can negotiate tax payments with property owners, potentially boosting fiscal flexibility and economic development in respective parishes. Local taxing authorities may find themselves better equipped to incentivize businesses to establish or expand operations within their jurisdictions.

Summary

Senate Bill 294 is a proposed constitutional amendment aimed at authorizing local taxing authorities in Louisiana to enter into cooperative endeavor agreements. These agreements would allow for negotiated, stipulated payments of ad valorem taxes related to properties used for manufacturing, industrial, or commercial purposes. The bill sets a maximum duration for these agreements at 40 years, promoting long-term financial planning and investment from property owners.

Sentiment

General sentiment regarding SB 294 is likely to reflect a mixture of support and caution. Proponents, particularly those in favor of economic development, may see this amendment as a way to bolster local economies and attract investment by offering tax incentives. Conversely, there may be concerns about the implications for tax revenue stability and equitable treatment of property owners, particularly from those who may view such agreements as preferential treatment for certain businesses.

Contention

Notable points of contention arise around the long-term implications of allowing local authorities to negotiate tax payments. Critics might argue that such practices could lead to disparities in tax obligations across different sectors, contribute to a loss of essential tax revenue that supports local services, and raise ethical questions about the fairness of negotiating taxes for specific businesses while others may have to adhere strictly to existing tax laws.