Louisiana House Bill HB330

Louisiana 2019 Regular Session

• Introduced: 3/28/19
• Refer: 3/28/19
• Refer: 4/8/19

Caption

(Constitutional Amendment) Exempts items constituting business inventory from ad valorem property tax (OR -$443,000,000 LF RV See Note)

Impact

If enacted, HB 330 would amend Article VII of the Louisiana Constitution, particularly adding a new section regarding property exemptions. The exemption would be applicable to all taxable years beginning on or after January 1, 2020, allowing businesses to benefit from reduced tax liabilities on their inventory. Local governments, which previously had the authority to impose ad valorem property taxes, would no longer be able to tax business inventory, fundamentally altering the landscape for taxation at the local level. This change could encourage local businesses and attract new enterprises to the state.

Summary

House Bill 330 proposes a constitutional amendment in Louisiana aimed at exempting items that constitute business inventory from ad valorem property taxation. The amendment specifies that goods held for sale, goods in production, and goods utilized in marketing and distribution activities will be exempt from property tax, providing a more favorable tax climate for businesses. The intent behind this legislation is to stimulate economic growth by reducing the tax burden on business inventory, which supporters argue is crucial for the state’s competitiveness and economic development.

Sentiment

General sentiment around HB 330 appears to be supportive among business communities and proponents of economic development, who view the tax exemption as a positive step toward enhancing the business environment in Louisiana. Advocates claim that reducing the tax burden on inventory will encourage investment, growth, and job creation within the state. However, there may be concerns from local governments about the potential loss of tax revenue and the implications for local budgets and public services, leading to a mixed reception among different stakeholders.

Contention

Some points of contention surrounding HB 330 include the implications for local government funding and services that rely on property taxes as a revenue source. Critics may argue that exempting business inventory could result in significant revenue losses for local municipalities, potentially impacting public services funded by these taxes. The bill’s proponents and critics need to consider the broader economic effects and balance the need for tax relief for businesses while ensuring that local governments can maintain necessary services and fiscal health.