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 635 Original 2020 Regular Session Ivey
Abstract: Authorizes an ad valorem tax exemption allowing a taxing authority to enter into a
cooperative endeavor agreement with a property owner that requires payments in lieu of
taxes imposed by that local taxing authority and establishes requirements.
Present constitution provides an exclusive list of ad valorem property tax exemptions.
Proposed law authorizes taxing authorities to enter into a cooperative endeavor agreement that
provides for payments in lieu of ad valorem taxes imposed by that taxing authority, subject to the
approval of the parish governing authority, the school board, the municipal governing authority, and
the sheriff as evidenced by the adoption of a resolution for that purpose, or in the case of a sheriff,
a letter.
Proposed law provides that the tax assessor shall be consulted in the negotiation of the cooperative
endeavor agreement terms.
Proposed law requires that a public hearing be held prior to the adoption of a resolution for the
approval of a cooperative endeavor agreement pursuant to proposed law. Public notice is required
in the form of advertisement in the official journal of the taxing authority, or in the absence of an
official journal, its local equivalent, at least once no later than 14 days prior to the hearing. The
public notice shall provide for where a copy of the draft cooperative endeavor agreement may be
examined.
Proposed law requires the business requesting the approval of the cooperative endeavor agreement
to provide a copy of the proposed agreement to the Dept. of Economic Development (DED) for
review. The public hearing cannot be scheduled until the business receives a written summary by
DED of the economic impacts of the project.
Proposed law requires that the summary and additional information produced by DED be submitted
to all taxing authorities that could be party to the cooperative endeavor agreement. Proposed law also
requires that DED act as an independent economic development advisor to the taxing authorities
throughout the cooperative endeavor agreement process.
Proposed law provides that any property subject to an agreement shall be exempt from ad valorem
taxation or may provide for a reduction in ad valorem taxes during the term of the agreement to the
extent provided for in the agreement. Proposed law limits cooperative endeavor agreements entered into for payment in lieu of taxes to
a term of no more than 25 years.
Proposed law provides that a cooperative endeavor agreement shall have no application to any ad
valorem tax of a taxing authority which is not a party to the agreement.
Proposed law requires that property in the cooperative endeavor agreement be listed on the
assessment rolls and information concerning those properties be submitted to the La. Tax
Commission.
Proposed law provides that administrative provisions concerning the collection of monies due under
an agreement shall be the same as those for ad valorem taxes. Further, the validity of an agreement,
as well as any transaction contemplated thereby, may be determined by the filing of a suit as
provided in present law, in the district court having jurisdiction for any party to the agreement in the
same manner and as though the agreement constitutes an issuance of bonds by the taxing authority.
Present law defines a "cooperative endeavor agreement" as a form of economic development
assistance between and among the state and local governments and other entities.
Proposed law retains present law and adds "agreements providing for payments in lieu of taxes" to
the definition of "cooperative endeavor agreement".
Effective if and when House Bill No. ___of this 2020 R.S. is enacted and becomes effective.
(Amends R.S. 33:9021(8) and (10) and 9022(1); Adds R.S. 33:2760)