Louisiana House Bill HB76

Louisiana 2019 Regular Session

• Introduced: 3/18/19
• Refer: 3/18/19
• Refer: 4/8/19
• Refer: 4/30/19
• Refer: 5/1/19
• Report Pass: 5/6/19
• Engrossed: 5/28/19

Caption

(Constitutional Amendment) Establishes an ad valorem tax exemption for property subject to a cooperative endeavor agreement requiring the property owner to make payments in lieu of taxes (RR SEE FISC NOTE LF RV See Note)

Impact

The implementation of HB 76 would significantly alter the landscape of property taxation in Louisiana, particularly concerning new manufacturing establishments. By establishing a framework for tax exemptions that are tied to cooperative agreements, the bill could incentivize new manufacturing investments within the state. However, it also introduces the requirement for a two-thirds legislative vote to enact any laws that would enable these agreements, which could impact the pace at which such initiatives can be realized and may provoke discussion regarding the efficiency and effectiveness of the legislative process in responding to local economic needs.

Summary

House Bill 76 proposes a constitutional amendment to establish an ad valorem property tax exemption for properties that are subject to a cooperative endeavor agreement. Under this agreement, property owners would make payments in lieu of the taxes typically owed to local taxing authorities. This bill seeks to clarify and formalize how such exemptions can be structured, mandating that they are contingent upon agreements laid out with local governments. The proposed amendment will require voters to decide whether to adopt this change during a statewide election, reflecting a commitment to engaging public input on significant tax policy changes.

Sentiment

The sentiment around HB 76 appears to be cautiously optimistic among supporters, particularly within the business and manufacturing sectors that view these tax exemptions as a means to attract investment and promote job growth. Conversely, there may be concern or skepticism from those worried about the implications of tax exemptions on local government funding and equity in taxation. The necessity for a two-thirds majority to implement changes to the property tax laws also highlights a recognition of the complexities involved in balancing economic incentives with fiscal responsibility.

Contention

Notably, the bill's stipulation that properties must be explicitly listed on assessment rolls and that any law for implementing payments in lieu of taxes requires extensive legislative consensus could spark contention among stakeholders. Critics may argue that the additional legislative hurdle could hinder the effectiveness of the exemptions by delaying necessary approvals or limiting flexibility in tax policy adaptations based on local economic conditions. This reflects a broader debate over how state-level legislation can balance local interests with statewide economic development strategies.