Louisiana House Bill HB234

Louisiana 2019 Regular Session

• Introduced: 3/27/19
• Refer: 3/27/19
• Refer: 4/8/19
• Refer: 4/29/19
• Refer: 4/30/19
• Engrossed: 5/22/19
• Refer: 5/23/19
• Report Pass: 5/27/19
• Enrolled: 6/3/19
• Chaptered: 6/28/19
• Passed: 6/28/19

Caption

(Constitutional Amendment) Extends the ad valorem tax exemption for raw materials, goods, commodities, and other property to property destined for the Outer Continental Shelf (EN SEE FISC NOTE LF RV See Note)

Impact

If enacted, HB234 would amend Article VII, Section 21(D)(2) and (3) of the Louisiana Constitution to specifically authorize tax exemptions for properties stored in public and private facilities, conditional upon their final destinations being on the Outer Continental Shelf. The effect of this amendment aims to stimulate local economies by attracting businesses involved in the transportation and storage of goods related to offshore drilling and other maritime activities, ultimately hoping to create more jobs and economic growth in relevant sectors.

Summary

House Bill 234 proposes an amendment to the Louisiana Constitution, specifically targeting the ad valorem tax exemptions for certain properties. This bill seeks to extend these exemptions to raw materials, goods, commodities, and other articles destined for the Outer Continental Shelf, thus facilitating their storage in Louisiana without the burden of additional taxes. The core intention is to bolster economic activities linked to offshore operations, which are pivotal to the state's economy.

Sentiment

The sentiment around the bill appears to be largely supportive among those who see the potential for significant economic growth as a result of increased activity on the Outer Continental Shelf. Proponents argue that enabling tax exemptions will promote business and investment in Louisiana's port facilities. However, there are concerns from advocates who fear that such exemptions may erode the tax base and lead to reduced funding for community services, highlighting a partisan divide in the bill's reception.

Contention

Notable points of contention include potential long-term implications for state revenue and the balance between supporting businesses and ensuring adequate public funding. Critics of the bill warn that while the immediate economic benefits could be substantial, the lasting effects may jeopardize funding for schools, infrastructure, and social services due to decreased tax revenues. The debate centers around finding a balance between incentivizing economic growth and maintaining fiscal responsibility.