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 54 Original 2020 First Extraordinary Session Ivey
Abstract: Establishes a program for the consideration and approval of standard, local, and
executive capital investment project ad valorem tax exemptions.
Present constitution provides for the exclusive list of ad valorem tax exemptions.
Proposed law defines the terms board, department, and political subdivision.
Proposed law creates a standard ad valorem tax exemption for capital investment projects.
Proposed law establishes an application for a standard ad valorem tax exemption and requires the
Board of Commerce and Industry hereinafter "board", to design and provide the application forms.
Proposed law further provides that the board shall review a standard ad valorem tax exemption and,
upon approval by the board, the exemption applicant and the board shall enter into a cooperative
endeavor agreement evidencing the exemption.
Proposed law provides that the standard ad valorem tax exemption shall exempt up to 80% of the
project's property taxes for a term of 8 years.
Proposed law requires the board to provide the appropriate political subdivisions with a copy of any
resolution adopted by the board approving the exemption and a copy of the cooperative endeavor
agreement.
Proposed law requires local governmental approval prior to the execution of the cooperative
endeavor agreement. A political subdivision must evidence the rejection of the exemption within 30
days of receipt or the exemption will be deemed approved.
Proposed law creates a local ad valorem tax exemption for capital investment projects.
Proposed law establishes an application for a local ad valorem tax exemption and requires the board
to design and provide the application forms. Proposed law further provides that to be eligible for
the local exemption an application must have received final approval by the board for a standard
exemption.
Proposed law requires the application for a local exemption to be forwarded to the parish governing
authority of the parish in which the project is to be located, within 15 days of board approval. Within
three days of receipt, the parish governing authority shall forward the application to each political subdivision that levies a millage and in whose district the project will be located.
Proposed law the Department of Economic Development hereinafter "department" shall provide the
parish governing authority and all relevant political subdivisions an analysis of every proposed
project requesting an exemption in the parish.
Proposed law provides within 60 days of receipt each political subdivision shall review each project
application in conjunction with the department's analysis and issue a resolution or a letter, in the case
of a sheriff, approving or rejecting the application. During this time political subdivisions may hold
public meetings to receive public input.
Proposed law provides that if the political subdivision approves the application, the political
subdivision and the applicant, with the assistance of the department, shall enter into a cooperative
endeavor agreement evidencing the exemption.
Proposed law further provides that the cooperative endeavor agreement shall be for up to 100% of
the property taxes of the project and for a term of not more than 15 years.
Proposed law requires that the parish governing authority shall provide the board with a copy of the
cooperative endeavor agreement and a copy of any resolution or letter approving the exemption.
Proposed law creates an executive ad valorem tax exemption for capital investment projects.
Proposed law provides that the governor may offer any entity an executive exemption. The
exemption may be for up to 100% of the property taxes of the project and for a specific term to be
decided by the governor.
Proposed law requires local governmental approval prior to the execution of the executive order
providing for an exemption. A political subdivision must evidence the rejection of the exemption
within 30 days of receipt or the exemption will be deemed approved.
Proposed law requires the executive exemption be evidenced by a gubernatorial executive order
providing the terms and conditions of the exemption.
Effective if and when the proposed amendment of Article VII, Section 21(F) of the Constitution of
La. contained in the Act which originated as House Bill No. 36 of this 2020 1st E.S. of the
Legislature is adopted at a statewide election and becomes effective.
(Adds R.S. 47:1721 and 1722)