Louisiana Senate Bill SB237

Louisiana 2019 Regular Session

• Introduced: 4/17/19
• Refer: 4/17/19
• Refer: 4/22/19
• Report Pass: 4/29/19
• Refer: 4/30/19
• Report Pass: 5/7/19
• Engrossed: 5/14/19
• Refer: 5/15/19
• Report Pass: 5/16/19
• Enrolled: 6/1/19
• Chaptered: 6/11/19
• Passed: 6/11/19

Caption

Provides relative to certain tax increment financing districts. (gov sig) (EN SEE FISC NOTE RV See Note)

Impact

Under SB237, taxing authorities within a designated district would gain the authority to levy ad valorem taxes, sales taxes, and hotel occupancy taxes, among others. This creates a structured method for financing economic development projects that can lead to the revitalization of economically challenged areas. Furthermore, the bill introduces cooperative economic development agreements that allow for collective investment strategies among public and private entities. It also provides tax exemptions for properties within the district aimed at incentivizing economic activities.

Summary

Senate Bill 237 seeks to introduce a framework for creating tax increment financing districts in Louisiana, particularly aimed at addressing areas with significant economic distress characterized by persistent unemployment and underemployment. The bill empowers parish governing authorities, specifically in parishes with populations exceeding 440,000, to establish these districts to facilitate economic development initiatives. This initiative is predicated on the identification of economically distressed regions within the parish, utilizing data from the U.S. Census to delineate boundaries for the proposed districts.

Sentiment

The sentiment towards SB237 among lawmakers and stakeholders is generally supportive, especially in light of the potential for job creation and economic revitalization in distressed areas. Proponents argue that the bill is a necessary measure to kickstart development and draw investments into underserved communities. However, there are concerns about the implications of such financing mechanisms, particularly regarding the long-term financial commitments required from the districts and how these new powers might be administratively handled.

Contention

Notable points of contention surrounding SB237 include discussions about the potential for misuse or misallocation of tax revenues that could arise from the newly established financial mechanisms. Critics raise concerns over transparency and accountability in the management of these funds, as well as the potential risks to local governance. The bill also stipulates that any district created must obtain prior consent from municipal authorities if its boundaries intersect with a municipality, raising further discussions about local versus parish-level control.