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 419 Original 2019 Regular Session Ivey
Abstract: Amend Article VII of the La. Constitution in its entirety.
Present constitution authorizes taxation by the state. state debt, the state bond commission, the use
of state funds. Present constitution further authorizes the following funds: the Wildlife and Fisheries
Conservation Fund, the Louisiana Education Quality Trust Fund, the Coastal Protection and
Restoration Fund, the Budget Stabilization Fund, the Higher Education Louisiana Partnership Fund,
the Mineral Revenue Audit and Settlement Fund, the Oilfield Site Restoration Fund, the Oil Spill
Contingency Fund, the Millennium Trust, the Louisiana Fund, the Millennium Leverage Fund, the
Artificial Reef Development Fund, the Agricultural and Seafood Products Support Fund, the
Hospital Stabilization Fund, the Louisiana Medical Assistance Trust Fund, the Revenue Stabilization
Trust Fund, the dedication of mineral revenues, the Revenue Sharing Fund, and Transportation Trust
Fund. Present constitution provides for the state budget and budgets, expenditure of state funds, the
general reporting of monies, investments by the state treasury, and taxation.
Present constitution authorizes equal and uniform taxes to be levied on net income. Further
authorizes the rates for these taxes to be graduated according to the amount of the taxpayer's net
income; however, the state individual and joint income tax schedule of rates and brackets are
prohibited from exceeding the rates and brackets as they existed on Jan. 1, 2003.
Present law provides for a tax to be assessed, levied, collected, and paid upon the taxable income of
an individual at the following rates and brackets:
(1)2% on the first $12,500 of net income.
(2)4% on the next $37,500 of net income.
(3)6% on net income in excess of $50,000.
Proposed constitutional amendment deletes the reference to the individual income tax rates and
brackets in existence on Jan. 1, 2003, in favor of specifying that a state tax levied on individual
income shall be levied at a flat rate which shall be established in law.
Present constitution authorizes federal income taxes paid to be allowed as a deductible item in
computing state individual, estates and trusts, and corporate income taxes for the same period. Proposed constitutional amendment changes present constitution by eliminating the deductibility of
federal income taxes paid when computing individual, estates and trusts, and corporate income tax
liability.
Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment creates the State Cybersecurity and Information Technology
Infrastructure Fund in the state treasury. Dedicates 0.0045% of monies in the state general fund that
are not allocated to the Bond Redemption and Security Fund or pledged in connection with the
issuance of bonds to be appropriated solely for purposes of enhancing and upgrading the state's
information technology infrastructure and to support cybersecurity needs.
Proposed constitutional amendment provides that unexpended and unencumbered monies in the fund
at the end of the fiscal year remain in the fund. The money in the fund shall be invested as provided
by law and any earnings realized on investment of money in the fund shall be deposited in and
credited to the fund.
Proposed constitutional amendment authorizes the establishment of a committee to assist the
legislature in consideration of priorities for the funding of information technology infrastructure
projects through appropriations from the fund with consent of the majority of the legislature.
Present constitution authorizes a property tax exemption (hereinafter (exemption)) for new
manufacturing establishments and miscellaneous additions to existing establishments for an initial
term of five years, with a five year renewal. The exemption is effectuated through a contract granted
by the Board of Commerce and Industry, with the approval of the governor.
Proposed constitutional amendment authorizes two ad valorem property tax exemptions for new
manufacturing establishments and additions to existing manufacturing establishments as follows:
(1)A standard exemption which shall be for a term of 7 years which exempts a property from
80% of its property taxes. The standard exemption is subject to approval by the Board of
Commerce and Industry with no additional approval requirement.
(2)A non-standard exemption which shall be for a term longer than 7 years which exempts a
property from more than 80% of its property taxes. The non-standard exemption is only
available to applicants if offered by the governor. The non-standard exemption is subject to
approval by the governor.
Proposed constitutional amendment retains present law related to listing property on tax assessment
rolls and various definitions.
Present constitution authorizes the levy of ad valorem taxes on property within Louisiana.
Present constitution establishes an exemption from state, parish, and special ad valorem property
taxes for the bona fide homestead of the property owner, for the first $7,500 of assessed valuation. Proposed constitutional amendment retains present constitution and adds authorization for a parish
governing authority to adjust the amount of the homestead exemption by the adoption of a resolution
or ordinance, to be effective only if approved by the electors of the parish. One time millage
adjustments are required in instances where the homestead exemption is adjusted so as to ensure the
same amount of revenue for taxing authorities.
Present constitution authorizes the State Board of Commerce and Industry to enter into exemption
contracts with manufacturing establishments (ITEP contracts), on the terms and conditions of the
board. Further requires approval of the contracts by the governor.
Proposed constitutional amendment changes authority to grant these exemptions from the State
Board of Commerce and Industry to parish governing authorities to enter into ITEP contracts.
Further requires a taxing authority to approve the exemption of its particular millage prior to
execution of the exemption contract.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Oct. 12, 2019.
(Amends Article VII of the La. Constitution)