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 50 Engrossed 2020 First Extraordinary Session Ivey
Abstract: Authorizes local governmental subdivisions to enter into cooperative endeavor
agreements that provide for payments in lieu of ad valorem taxes in the form of an abatement
with owners of non-residential immovable property.
Present constitution authorizes the imposition of ad valorem property taxes by local governments,
school boards, and other special districts.
Present constitution establishes a list of exclusive ad valorem tax exemptions.
Proposed law authorizes local governmental subdivisions to enter into cooperative endeavor
agreements for payments in lieu of ad valorem taxes in the form of an abatement with an owner of
non-residential immovable property located within the parish.
Proposed law provides that cooperative endeavor agreements may be entered into by any local taxing
authority after approval evidenced by a resolution adopted by the taxing authority or by letter of
approval from the sheriff.
Proposed law provides the cooperative endeavor agreement shall include the abatement schedule and
a copy shall be submitted to the assessor within 10 days of the execution of the cooperative endeavor
agreement.
Proposed law requires that a public hearing be conducted by a taxing authority before adoption of
any resolution approving a cooperative endeavor agreement providing for payments in lieu of taxes.
Proposed law requires notice of the hearing to be published no later than 14 days prior to the hearing.
The notice shall inform the public where a copy of the proposed cooperative endeavor agreement
may be obtained and the time and place of the hearing.
Proposed law provides that any cooperative endeavor agreement apply only to the taxing authorities
that are parties to the agreement and that nonparticipating taxing authority are not bound by the
agreement.
Proposed law provides that before entering into a cooperative endeavor agreement providing for
payments in lieu of taxes, a taxing authority shall submit a request to the Dept. of Economic
Development (department) which shall respond to the taxing authority within 30 days from the date
the request is received and that the findings and advice of the department is not binding. Proposed law requires that any property subject to a cooperative endeavor agreement that provides
for payments in lieu of taxes remain on the assessment rolls for the parish or parishes where the
property is located.
Proposed law requires the assessor to record the abatement schedule and provide for the application
of the abatement to future property tax liabilities as provided for in the cooperative endeavor
agreements.
Proposed law provides that matters relating to the payment and collection of payments in lieu of
taxes shall be set forth in the cooperative endeavor agreement.
Effective if and when the proposed addition of Article VII, Section 21(O) of the Constitution of
Louisiana contained in the Act which originated as HB No. 38 of the 2020 First E.S. is adopted at
the statewide election to be held on Nov. 3, 2020, and becomes effective.
(Amends R.S. 33:9022(1); Adds R.S. 33:2759)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Add an abatement exemption.
2. Establish the calculation for the amount of the abatement.
3. Remove the provisions establishing the PILOT Advisory Committee.
4. Remove the provisions providing for the authority, membership, and responsibilities of
the PILOT Advisory Committee.
5. Add provisions requiring the Dept. of Economic Development to assist in the cooperative
endeavor agreement process.
6. Make technical changes.