Louisiana Senate Bill SB33

Louisiana 2019 Regular Session

• Introduced: 3/20/19
• Refer: 3/20/19
• Refer: 4/8/19
• Report Pass: 4/15/19
• Refer: 4/16/19
• Report Pass: 4/30/19
• Engrossed: 5/2/19
• Refer: 5/6/19
• Report Pass: 5/20/19
• Enrolled: 5/31/19
• Chaptered: 6/20/19
• Passed: 6/20/19

Caption

Authorizes expansion of scope of projects and extension of use of state sales tax for certain tax increment financing districts. (8/1/19) (EN DECREASE GF RV See Note)

Impact

The impact of SB33 on state laws is significant as it alters the current constraints governing the use of state tax increments. The amendments in this bill provide exceptions that empower local governments to utilize state sales tax increments for projects that have been established prior to specified cutoff dates in 1995 and 1997. This change is expected to enhance the capacity of municipalities to stimulate local economies by funding critical development initiatives without conflicting with existing financial obligations. Moreover, it clarifies the conditions under which sales tax increments can be dedicated to revenue bonds necessary for beneficial development.

Summary

Senate Bill 33 is legislation aimed at modifying the provisions related to tax increment financing (TIF) in the state of Louisiana. The bill allows local governmental subdivisions to use state sales tax increments for the expansion of specific economic development projects. This provision opens the door for local entities to finance or refinance various economic development projects using a portion of the sales tax revenues generated from those projects beyond the amounts collected in previous years. By relaxingly applying restrictions on state tax increments, SB33 is designed to encourage local economic growth and investment in designated development areas.

Sentiment

The sentiment surrounding SB33 appears to be supportive among local government officials who seek greater autonomy in financing their development projects. The consensus among proponents suggests that it could potentially lead to improved economic conditions by making funds more accessible for development projects. However, there may be concerns among some stakeholders about the implications for state revenues and the prioritization of local initiatives over broader fiscal goals.

Contention

Notable points of contention may arise due to the delegation of financial autonomy to local governments. While supporters laud the potential for enhanced economic development, critics may question the wisdom of expanding the use of state sales tax increments, fearing it may lead to disparities in investment across various regions. Such divides could potentially foster inequities where more affluent areas benefit disproportionately from the financing options available under this modified framework. The ongoing dialogue surrounding SB33 will likely reflect the tension between fostering local development and ensuring equitability in state financial policy.