SLS 20RS-517 ORIGINAL
2020 Regular Session
SENATE BILL NO. 350
BY SENATOR WARD
TAX/AD VALOREM. Provides for ad valorem tax exemptions for certain property. (See
Act)
1 AN ACT
2 To enact Chapter 1-A of Subtitle III of Title 47 of the Louisiana Revised Statutes of 1950,
3 to be comprised of R.S. 47:1720 and 1721, relative to ad valorem tax; to provide for
4 exemptions from ad valorem property taxes of certain property for capital investment
5 projects; to provide for cooperative endeavor agreements; to provide for the terms
6 and values of exemptions; to provide for definitions; to provide for political
7 subdivision approval; to provide for gubernatorial approval; to provide for the
8 consideration, approval, and granting of the exemption; to provide for effectiveness;
9 and to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. Chapter 1-A of Subtitle III of Title 47 of the Louisiana Revised Statutes
12 of 1950, comprised of R.S. 47:1720 and 1721, is hereby enacted to read as follows:
13 CHAPTER 1-A. AD VALOREM TAX EXEMP TIONS FOR
14 CERTAIN CAPITAL INVESTMENT PROJECTS
15 §1720. Definitions
16 For the purpose of this Chapter the following words have the following
17 meanings:
Page 1 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 350
SLS 20RS-517 ORIGINAL
1 A. "Board" shall mean the Board of Commerce and Industry.
2 B. "Department" shall mean the Department of Economic Development.
3 C. "Political subdivision" shall mean any parish governing authority,
4 school board, sheriff, municipality, city, or special district authorized by the
5 constitution or by law to levy an ad valorem tax.
6 §1721. Capital Investment Project Exemption
7 A. Exemptions. In accordance with Article VII, Section 21(F) of the
8 Constitution of Louisiana, there are hereby established standard, local, and
9 executive ad valorem tax exemptions for capital investment projects.
10 B. Standard Exemption. (1) Procedure. The board shall establish
11 application procedures for the standard exemption in accordance with the
12 constitution. The application for the standard exemption shall be on forms
13 designed and prescribed by the board.
14 (2) Review. The board shall review all standard exemption applications
15 in a timely manner and render a recommendation for each application.
16 (3) Cooperative Endeavor Agreement. Upon approval by the board, the
17 board and the applicant with the assistance of the department, shall enter into
18 a cooperative endeavor agreement evidencing the exemption. The cooperative
19 endeavor agreement shall provide for an ad valorem tax exemption of eighty
20 percent of the property taxes and for a term of eight calendar years.
21 (4) Final Approval. The board shall provide the political subdivisions a
22 copy of any resolution adopted by the board approving a standard exemption,
23 as well as a copy of the cooperative endeavor agreement evidencing the
24 standard exemption.
25 C. Local Exemption. (1) Eligibility. No applicant shall be eligible for the
26 local exemption until they have received final approval by the board for a
27 standard exemption. Each parish shall establish eligibility requirements for the
28 local exemption in accordance with the constitution. The application for the
29 local exemption shall be on forms designed and prescribed by the board.
Page 2 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 350
SLS 20RS-517 ORIGINAL
1 (2) Application. The board shall forward an application for exemption
2 to the parish governing authority in which the project will be located within
3 fifteen days of approval.
4 (3) Review. The parish governing authority shall forward a copy of the
5 application within three days of receipt to each political subdivision that levies
6 a millage and in whose jurisdiction the project will be located. The department
7 shall provide the parish governing authority with an analysis of the project
8 applying for an exemption. When a project is located within the jurisdiction of
9 multiple political subdivisions, each political subdivision shall be provided a
10 copy of the application and analysis. Each political subdivision shall review the
11 application in conjunction with the department's analysis and issue a resolution
12 or letter, in the case of a sheriff, approving or rejecting the exemption within
13 sixty days of receipt of the application from the parish governing authority. In
14 reviewing the application, political subdivisions may hold a public meeting for
15 the purpose of receiving public input.
16 (4) Cooperative Endeavor Agreement. Upon the political subdivisions'
17 approval of the exemption, the political subdivisions and the applicant, with the
18 assistance of the department, shall enter into a cooperative endeavor agreement
19 evidencing the exemption. The cooperative endeavor agreement shall provide
20 for an ad valorem tax exemption of up to one hundred percent of the property
21 tax and for a term not more than fifteen years.
22 (5) Final Approval. The parish governing authority shall provide the
23 board with a copy of the final cooperative endeavor agreement and a copy of all
24 resolutions or letters approving the exemption.
25 D. Executive Exemption. (1) Eligibility and Application. The governor
26 shall be permitted to provide an executive exemption for capital investment
27 projects in accordance with the constitution.
28 (2) Invitation and Offer. The governor shall be permitted to offer any
29 entity an executive exemption from ad valorem property taxes. The exemption
Page 3 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 350
SLS 20RS-517 ORIGINAL
1 may be for up to one hundred percent of the property taxes for a specific term
2 decided at the governor's discretion. The board shall establish procedures that
3 require local approval pursuant to Subsection (C) of this Section, prior to the
4 governor granting the executive exemption. The executive exemption shall be
5 evidenced by a gubernatorial executive order providing the terms and
6 conditions of the exemption.
7 Section 2. This Act shall take effect and become operative if and when the proposed
8 amendment of Article VII, Section 21(F) of the Constitution of Louisiana contained in the
9 Act which originated as Senate Bill No. _______ of this 2020 Regular Session of the
10 Legislature is adopted at a statewide election and becomes effective.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Curry Lann.
DIGEST
SB 350 Original 2020 Regular Session Ward
Proposed law creates a standard ad valorem tax exemption for capital investment projects.
Proposed law defines the terms board, department, and political subdivision.
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 relevant 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 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 in whose district the project
will be located.
Proposed law requires the Dept. of Economic Development hereinafter "department" shall
Page 4 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 350
SLS 20RS-517 ORIGINAL
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 for a local exemption
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 parish governing authority shall provide the board with a copy
of the executive cooperative endeavor agreement and a copy of any resolution or letter
approving the local 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 provides that the board shall establish procedures requiring local approval
prior to the governor granting the exemption.
Proposed law requires the executive exemption be evidenced by a gubernatorial executive
order providing the terms and conditions of the exemption.
(Adds R.S. 47:1720 and 1721)
Page 5 of 5
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.