HLS 20RS-736 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 527
BY REPRESENTATIVE IVEY
TAX/AD VALOREM TAX: (Constitutional Amendment) To provide for ad valorem tax
exemptions for certain property
1 A JOINT RESOLUTION
2Proposing to amend and reenact Article VII, Section 21(F) of the Constitution of Louisiana
3 and to add Article VII, Section 21(O) of the Constitution of Louisiana, relative to ad
4 valorem property tax exemptions; to establish ad valorem tax exemptions for certain
5 property; to establish exemptions for certain capital investment projects; to provide
6 for the terms of exemptions; to provide for the amount of the exemptions; to provide
7 authorization for approval of the exemptions; to authorize the administration of the
8 exemptions; to provide for review by the Board of Commerce and Industry; to
9 provide for approval from political subdivisions; to provide for gubernatorial
10 approval; to authorize an exemption for certain non-residential property subject to
11 a cooperative endeavor agreement requiring payments in lieu of taxes; to provide for
12 certain requirements and limitations; to provide for effectiveness; to provide for
13 submission of the proposed amendment to the electors; and to provide for related
14 matters.
15 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
16elected to each house concurring, that there shall be submitted to the electors of the state of
17Louisiana, for their approval or rejection in the manner provided by law, a proposal to
18amend Article VII, Section 21(F) of the Constitution of Louisiana and to add Article VII,
19Section 21(O) of the Constitution of Louisiana, to read as follows:
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HB NO. 527
1 §21. Other Property Exemptions
2 Section 21. In addition to the homestead exemption provided for in Section
3 20 of this Article, the following property and no other shall be exempt from ad
4 valorem taxation:
5 * * *
6 (F) Notwithstanding any contrary provision of this Section, the State Board
7 of Commerce and Industry or its successor, with the approval of the governor, may
8 enter into contracts for the there is hereby authorized a standard, local, and executive
9 exemption from ad valorem taxes of a new manufacturing establishment or an
10 addition to an existing manufacturing establishment, on such terms and conditions
11 as the board, with the approval of the governor, deems in the best interest of the
12 state. for capital investment projects as follows:
13 (1) The standard exemption shall be for an initial a term of no more than five
14 eight calendar years, and may be renewed for an additional five years shall provide
15 for an ad valorem tax exemption of eighty percent of the property taxes of the capital
16 investment project. The granting of a standard exemption shall be reviewed by the
17 Board of Commerce and Industry, or its successor as provided by law, and no
18 additional approval is required for the granting of this exemption. Enactment of any
19 law to administer this exemption shall require a favorable vote of two-thirds of the
20 elected members of each house of the legislature.
21 (2) The local exemption shall be for a term of no more than fifteen years and
22 may provide for an ad valorem tax exemption of up to one hundred percent of the
23 property taxes of the capital investment project. The granting of a local exemption
24 shall require the approval of each political subdivision in whose district the project
25 is to be located. Enactment of any law to administer this exemption shall require a
26 favorable vote of two-thirds of the elected members of each house of the legislature.
27 (3) The executive exemption shall be for a term determined by the governor
28 and may provide for an ad valorem tax exemption of up to one hundred percent of
29 the property taxes of the capital investment project. The granting of an executive
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HB NO. 527
1 exemption shall require approval from the governor. Enactment of any law to
2 administer this exemption shall require a favorable vote of two-thirds of the elected
3 members of each house of the legislature.
4 (4) All property exempted shall be listed on the assessment rolls and
5 submitted to the Louisiana Tax Commission or its successor, but no taxes shall be
6 collected thereon during the period of exemption.
7 The terms "manufacturing establishment" and "addition" as used herein mean
8 a new plant or establishment or an addition or additions to any existing plant or
9 establishment which engages in the business of working raw materials into wares
10 suitable for use or which gives new shapes, qualities or combinations to matter which
11 already has gone through some artificial process.
12 * * *
13 (O) Non-residential property subject to a cooperative endeavor agreement,
14 as provided by law and this constitution, between the owner and one or more taxing
15 authorities which agreement requires the property owner to make payments in lieu
16 of taxes. Non-residential property eligible for this exemption shall be established by
17 law.
18 (1) The exemption authorized under this Paragraph shall be to the extent
19 agreed to and provided for in the cooperative endeavor agreement. All property
20 made part of the cooperative endeavor agreement shall be listed on the assessment
21 rolls and submitted to the Louisiana Tax Commission.
22 (2) Enactment of any law to implement this Paragraph and any amendment
23 to that law shall require a two-thirds vote of the elected members of each house of
24 the legislature.
25 Section 2. Be it further resolved that the provisions of the amendment contained in
26this Joint Resolution shall become effective on January 1, 2021.
27 Section 3. Be it further resolved that this proposed amendment shall be submitted
28to the electors of the state of Louisiana at the statewide election to be held on November 3,
292020.
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HB NO. 527
1 Section 4. Be it further resolved that on the official ballot to be used at the election,
2there shall be printed a proposition, upon which the electors of the state shall be permitted
3to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
4follows:
5 Do you support an amendment to authorize ad valorem property tax
6 exemptions for certain capital investment projects, to provide for the
7 approval, terms, and amounts of the exemptions, and to authorize the
8 legislature to provide for the administration of the exemptions by law and
9 to authorize a property tax exemption for non-residential property subject to
10 a cooperative endeavor agreement with local taxing authorities allowing the
11 property owner to make payments in place of property taxes and to require
12 a two-thirds vote of the legislature to enact laws related to the exemptions?
13 (Effective January 1, 2021) (Amends Article VII, Section 21(F); Adds
14 Article VII, Section 21(O))
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 527 Original 2020 Regular Session Ivey
Abstract: Establishes a standard, local, and executive ad valorem property tax exemption
for capital investment projects and establishes an ad valorem tax exemption for non-
residential property subject to a cooperative endeavor agreement requiring payment
in lieu of taxes.
Present constitution authorizes a property tax exemption (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.
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.
No additional approval is required.
(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.
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HB NO. 527
(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.
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.
Present constitution authorizes the imposition of ad valorem property taxes by local
governments, school boards, and other special districts.
Present constitution establishes an exclusive list of ad valorem tax exemptions.
Proposed constitutional amendment retains present constitution but adds an exemption for
non-residential property subject to a cooperative endeavor agreement requiring the property
owner to make payments in lieu of the ad valorem taxes imposed by a taxing authority party
to the agreement. The extent of the exemption shall be as provided for in the agreement.
Proposed constitutional amendment provides the specific property eligible for this
exemption shall be established in law.
Proposed constitutional amendment requires that any law enacted to implement this payment
in lieu of taxes program will require a two-thirds vote of both houses of the legislature.
Proposed constitutional amendment requires that exempt properties be listed on the
assessment rolls and that information concerning those properties be submitted to the La.
Tax Commission.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2020.
Effective Jan. 1, 2021
(Amends Const. Art. VII, §21(F); Adds Const. Art. VII, §21(O))
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