HLS 19RS-176 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 440
BY REPRESENTATIVE IVEY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Provides with respect
to the ad valorem property tax exemption for certain manufacturers
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 21(F) of the Constitution of Louisiana, relative to
3 ad valorem property tax exemptions; to establish exemptions for certain property of
4 manufacturing establishments; to provide for the terms of exemptions; to provide for
5 the amount of exemptions; to provide relative to authorization for approval of
6 exemptions; to authorize the administration of the exemption in law; to provide for
7 certain limitations; to provide for certain requirements; to provide for limitations; to
8 provide for submission of the proposed amendment to the electors; and to provide
9 for related matters.
10 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
11elected to each house concurring, that there shall be submitted to the electors of the state of
12Louisiana, for their approval or rejection in the manner provided by law, a proposal to
13amend Article VII, Section 21(F) of the Constitution of Louisiana, to read as follows:
14 §21. Other Property Exemptions
15 Section 21. In addition to the homestead exemption provided for in Section 20 of
16this Article, the following property and no other shall be exempt from ad valorem taxation:
17 * * *
18 (F) Notwithstanding any contrary provision of this Section, the State Board
19 of Commerce and Industry or its successor, with the approval of the governor, may
20 enter into contracts for the there is hereby authorized a standard and non-standard
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HB NO. 440
1 exemption from ad valorem taxes of for a new manufacturing establishment or an
2 addition to an existing manufacturing establishment, on such terms and conditions
3 as the board, with the approval of the governor, deems in the best interest of the
4 state. as follows:
5 (1) The standard exemption shall be for an initial a term of no more than five
6 seven calendar years, and may be renewed for an additional five years. and shall
7 provide for an ad valorem tax exemption of eighty percent of the property taxes of
8 the manufacturing establishment or an addition to an existing manufacturing
9 establishment. The granting of a standard exemption shall be approved by the Board
10 of Commerce and Industry, or its successor. No additional approval is required for
11 the granting of this exemption, however the legislature may provide for the
12 administration of this exemption in law, subject to a favorable vote of two-thirds of
13 the elected members of each house of the legislature.
14 (2) The non-standard exemption shall be for a term greater than seven
15 calendar years and shall provide for an ad valorem tax exemption greater than eighty
16 percent of the property tax of the manufacturing establishment or an addition to an
17 existing manufacturing establishment. The granting of a non-standard exemption
18 shall be approved by the governor and the House Ways and Means Committee and
19 the Senate Revenue and Fiscal Affairs Committee.
20 (3) All applicants seeking an ad valorem tax exemption under this Paragraph
21 shall qualify for the standard exemption. Only upon invitation by the governor shall
22 an applicant be eligible to apply for the non-standard ad valorem tax exemption.
23 (4) All property exempted shall be listed on the assessment rolls and
24 submitted to the Louisiana Tax Commission or its successor, but no taxes shall be
25 collected thereon during the period of exemption.
26 (5) The terms "manufacturing establishment" and "addition" as used herein
27 mean a new plant or establishment or an addition or additions to any existing plant
28 or establishment which engages in the business of working raw materials into wares
29 suitable for use or which gives new shapes, qualities or combinations to matter which
30 already has gone through some artificial process.
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HB NO. 440
1 ** ** **
2 Section 2. Be it further resolved that this proposed amendment shall be submitted
3to the electors of the state of Louisiana at the statewide election to be held on October 12,
42019.
5 Section 3. Be it further resolved that on the official ballot to be used at the election,
6there shall be printed a proposition, upon which the electors of the state shall be permitted
7to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
8follows:
9 Do you support an amendment to authorize ad valorem property tax
10 exemptions for certain new manufacturing establishments or additions to
11 such establishments and to provide for the approval, terms, and amounts of
12 the exemptions? (Amends Article VII, Section 21(F))
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 440 Engrossed 2019 Regular Session Ivey
Abstract: Establishes a standard and a non-standard property tax exemption for
manufacturing establishments and additions to manufacturing establishments. A
standard property tax exemption exempts 80% of a property from ad valorem taxes
for a term of 7 years and a non-standard property tax exemption exempts a property
from more than 80% of property taxes for a term of longer than 7 years.
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 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.
(2)A non-standard exemption for a term of 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 and is subject to approval by
the governor and the House Ways and Means and Senate Revenue and Fiscal Affairs
committees.
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HB NO. 440
Proposed constitutional amendment retains present law related to listing property on tax
assessment rolls and various definitions.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held October 12, 2019.
(Amends Art. VII, §21(F))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the non-standard exemption approval from the governor to approval of
the governor and the House Ways and Means and Senate Revenue and Fiscal
Affairs committees.
2. Make technical changes.
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