HLS 201ES-1 ENGROSSED
2020 First Extraordinary Session
HOUSE BILL NO. 36
BY REPRESENTATIVE IVEY
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Establishes certain
property tax exemptions for capital investment projects (Item #28)
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 21(F) of the Constitution of Louisiana, relative to
3 ad valorem property tax exemptions; to establish exemptions for certain property; to
4 establish exemptions for certain capital investment projects; to provide for the terms
5 of exemptions; to provide for the amount of the exemptions; to provide authorization
6 for approval of the exemptions; to provide for the administration of the exemptions;
7 to provide for review by the Board of Commerce and Industry; to provide for
8 approval from political subdivisions; to provide for gubernatorial approval; to
9 provide for certain limitations; to provide for certain requirements; to provide for
10 submission of the proposed amendment to the electors; and to provide for related
11 matters.
12 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
13elected to each house concurring, that there shall be submitted to the electors of the state of
14Louisiana, for their approval or rejection in the manner provided by law, a proposal to
15amend Article VII, Section 21(F) of the Constitution of Louisiana, to read as follows:
16 §21. Other Property Exemptions
17 Section 21. In addition to the homestead exemption provided for in Section
18 20 of this Article, the following property and no other shall be exempt from ad
19 valorem taxation:
20 * * *
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HB NO. 36
1 (F) Notwithstanding any contrary provision of this Section, the State Board
2 of Commerce and Industry or its successor, with the approval of the governor, may
3 enter into contracts for the exemption there are hereby authorized standard, local, and
4 executive exemptions from ad valorem taxes of a new manufacturing establishment
5 or an addition to an existing manufacturing establishment, on such terms and
6 conditions as the board, with the approval of the governor, deems in the best interest
7 of the state. for capital investment projects as follows:
8 (1) The standard exemption shall be for an initial a term of no more than five
9 eight calendar years, and may be renewed for an additional five years shall provide
10 for an ad valorem tax exemption of eighty percent of the property taxes of the capital
11 investment project. The granting of a standard exemption shall be reviewed by the
12 Board of Commerce and Industry, or its successor as provided by law, and shall be
13 subject to local approval as prescribed by law. Enactment of any law to administer
14 this exemption shall require a favorable vote of two-thirds of the elected members
15 of each house of the legislature.
16 (2) The local exemption shall be for a term of no more than fifteen years and
17 may provide for an ad valorem tax exemption of up to one hundred percent of the
18 property taxes of the capital investment project. The granting of a local exemption
19 shall be subject to local approval as prescribed by law. Enactment of any law to
20 administer this exemption shall require a favorable vote of two-thirds of the elected
21 members of each house of the legislature.
22 (3) The executive exemption shall be for a term determined by the governor
23 and may provide for an ad valorem tax exemption of up to one hundred percent of
24 the property taxes of the capital investment project. The granting of an executive
25 exemption shall require approval from the governor and shall be subject to local
26 approval as prescribed by law. Enactment of any law to administer this exemption
27 shall require a favorable vote of two-thirds of the elected members of each house of
28 the legislature. All property exempted shall be listed on the assessment rolls and
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HB NO. 36
1 submitted to the Louisiana Tax Commission or its successor, but no taxes shall be
2 collected thereon during the period of exemption.
3 The terms "manufacturing establishment" and "addition" as used herein mean
4 a new plant or establishment or an addition or additions to any existing plant or
5 establishment which engages in the business of working raw materials into wares
6 suitable for use or which gives new shapes, qualities or combinations to matter which
7 already has gone through some artificial process.
8 * * *
9 Section 2. Be it further resolved that this proposed amendment shall be submitted
10to the electors of the state of Louisiana at the statewide election to be held on November 3,
112020.
12 Section 3. Be it further resolved that on the official ballot to be used at the election,
13there shall be printed a proposition, upon which the electors of the state shall be permitted
14to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
15follows:
16 Do you support an amendment to authorize property tax exemptions for
17 capital investment projects, to provide for the approval, terms, and amounts
18 of the exemptions, and to authorize the legislature to provide for the
19 administration of the exemptions by law? (Amends Article VII, Section
20 21(F))
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 36 Engrossed 2020 First Extraordinary Session Ivey
Abstract: Establishes standard, local, and executive property tax exemptions for capital
investment projects when the projects meet eligibility and approval standards
pursuant to law.
Present constitution authorizes a property tax exemption for new manufacturing
establishments and additions to existing establishments for an initial term of five years, with
a five-year renewal. The exemption is effectuated through a contract granted by the Board
of Commerce and Industry, with the approval of the governor.
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HB NO. 36
Proposed constitutional amendment authorizes three ad valorem property tax exemptions for
capital investment projects as follows:
(1)A standard exemption for a term of eight calendar years for 80% of its property
taxes. The exemption is subject to review by the Board of Commerce and Industry.
This exemption is subject to local approval as provided by law.
(2)A local exemption for a term of no more than 15 calendar years for up to 100% of
its property taxes. This exemption requires the approval of local taxing authorities
as provided by law.
(3)An executive exemption for a term determined by the governor for up to 100% of its
property taxes. This exemption requires approval of the governor and is subject to
local approval as provided by law.
Proposed constitutional amendment also requires that any law enacted to administer any of
the new exemptions requires a favorable vote of two-thirds of the elected members of each
house of the legislature.
Proposed constitutional amendment retains present constitution requirement related to listing
property on tax assessment rolls and deletes various definitions.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2020.
(Amends Const. Art. VII, §21(F))
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