HLS 19RS-226 ORIGINAL
2019 Regular Session
HOUSE BILL NO. 76
BY REPRESENTATIVE ABRAHAM
TAX/AD VALOREM-EXEMPTION: (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
1 A JOINT RESOLUTION
2Proposing to add Article VII, Section 21(O) of the Constitution of Louisiana, to provide for
3 ad valorem property tax exemptions; to establish an exemption for certain property
4 subject to a cooperative endeavor agreement requiring payments in lieu of taxes; to
5 provide for requirements and limitations; to provide for submission of the proposed
6 amendment to the electors; and to provide for related matters.
7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
8elected to each house concurring, that there shall be submitted to the electors of the state of
9Louisiana, for their approval or rejection in the manner provided by law, a proposal to add
10Article VII, Section 21(O) of the Constitution of Louisiana, to read as follows:
11 ยง21. Other Property Exemptions
12 Section 21. In addition to the homestead exemption provided for in Section
13 20 of this Article, the following property and no other shall be exempt from ad
14 valorem taxation:
15 * * *
16 (O) Property that is subject to a cooperative endeavor agreement, as provided
17 by law and this constitution, between the owner and one or more taxing authorities
18 which agreement requires the property owner to make payments in lieu of taxes as
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-226 ORIGINAL
HB NO. 76
1 provided by law. Property eligible for this exemption shall be as provided in
2 Subparagraph (1) of this Paragraph.
3 (1)(a) Property of a new manufacturing establishment or an addition to an
4 existing manufacturing establishment.
5 (b) Other property, subject to a cooperative endeavor agreement which has
6 been approved by a committee of the legislature, as provided by law.
7 (2) The exemption authorized under this Paragraph shall be to the extent
8 agreed to and provided for in the cooperative endeavor agreement. All property
9 exempted shall be listed on the assessment rolls and submitted to the Louisiana Tax
10 Commission.
11 (3) Except as otherwise provided herein, property that has been subject to a
12 contract of exemption as provided in Paragraph (F) of this Section shall be ineligible
13 for the exemption authorized under this Paragraph. Notwithstanding the foregoing,
14 an ad valorem taxing authority may negotiate and enter into a cooperative endeavor
15 agreement with a property owner for payments in lieu of ad valorem taxes during the
16 first four years of a contract of exemption allowed by Paragraph (F) of this Section
17 as provided by law.
18 (4) The terms "manufacturing establishment" and "addition" shall have the
19 same meanings ascribed to them in Paragraph (F) of this Section.
20 Section 2. Be it further resolved that this proposed amendment shall be submitted
21to the electors of the state of Louisiana at the statewide election to be held on October 12,
222019.
23 Section 3. Be it further resolved that on the official ballot to be used at the election,
24there shall be printed a proposition, upon which the electors of the state shall be permitted
25to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
26follows:
27 Do you support an amendment to grant a property tax exemption for property
28 that is subject to an agreement with local government allowing the property
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-226 ORIGINAL
HB NO. 76
1 owner to make payments instead of property taxes? (Adds Article VII,
2 Section 21(O))
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 76 Original 2019 Regular Session Abraham
Abstract: Establishes an ad valorem tax exemption for property that is subject to a
cooperative endeavor agreement that requires the property owner to make payments
in lieu of ad valorem taxes.
Present constitution authorizes the imposition of ad valorem property taxes by local
governments, school boards, and other special districts.
Present constitution authorizes a variety of exemptions from ad valorem tax.
Proposed constitutional amendment changes present constitution by establishing an
exemption for property subject to a cooperative endeavor agreement that requires the
property owner to make payments in lieu of the ad valorem taxes imposed by a taxing
authority that is a party to the agreement. The extent of the exemption shall be as provided
for in the agreement.
Proposed constitutional amendment limits eligibility for the exemption to either a
manufacturing establishment that qualifies for the industrial tax exemption, or a property
subject to a cooperative endeavor agreement that has been approved by a legislative
committee as provided by law. Proposed constitutional amendment further prohibits
eligibility for this exemption for a manufacturing establishment that has a contract for the
industrial tax exemption, unless it is within the first four years of that contract.
Proposed constitutional amendment requires that exempt properties be listed on the
assessment rolls and that information concerning those properties be submitted to the La.
Tax Commission.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held October 12, 2019.
(Adds Article VII, Section 21(O))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.