Louisiana House Bill HB33

Louisiana 2020 1st Special Session

• Introduced: 6/5/20
• Refer: 6/5/20

Caption

(Constitutional Amendment) Establishes an ad valorem tax exemption for certain property subject to a cooperative endeavor agreement requiring the property owner to make payments in lieu of taxes (Item #28) (OR SEE FISC NOTE LF RV See Note)

Impact

If enacted, HB 33 would alter the current framework of property taxation in Louisiana, particularly concerning non-residential properties. This change allows specific properties that enter into cooperative agreements with local authorities to benefit from tax exemptions that previously did not exist. The legislation also emphasizes the necessity of legislative oversight, as any changes to the implementation of the taxation program must be passed by a two-thirds majority. This aligns with the desire to maintain a check on local governance while also providing incentives for economic development.

Summary

House Bill 33 proposes a constitutional amendment that establishes an ad valorem tax exemption for certain non-residential properties under a cooperative endeavor agreement. This agreement mandates that the property owners will make payments in lieu of taxes instead of paying standard property taxes. The proposed amendment specifically requires that any law established to implement this program necessitates a two-thirds majority vote from both houses of the Louisiana legislature. This structure intends to create a more flexible taxation environment for properties involved in cooperative agreements with local taxing authorities.

Sentiment

The sentiment around HB 33 is expected to be mixed. Proponents argue that the bill offers essential tax relief and could encourage business investments in non-residential properties, potentially stimulating economic growth. Business advocates may view this bill favorably, seeing it as a means to streamline tax obligations for developers and local enterprises. Conversely, critics could argue that the tax exemptions may lead to reduced revenue for local governments, which could adversely affect public services and infrastructure funding. The debate may center on the balance between fostering economic development and preserving local government revenue streams.

Contention

A notable point of contention regarding HB 33 focuses on the implications of reducing property tax revenue for local governments. Critics of the bill may express concern that providing tax exemptions could undermine funding for vital services, such as education and public safety. Additionally, there may be apprehensions about how broadly the term 'non-residential property' is defined within the context of the cooperative agreements, which could lead to varying interpretations and potential inequities in implementation. Overall, the passage of this bill holds significant implications for local governance and tax policy.