Louisiana House Bill HB305

Louisiana 2021 Regular Session

• Introduced: 3/30/21
• Refer: 3/30/21
• Refer: 4/12/21

Caption

Levies a statewide ad valorem property tax and provides for the assessment and collection of the tax (OR INCREASE GF RV See Note)

Impact

If enacted, HB 305 will amend existing tax regulations by instituting a new layer of property taxation, in addition to the current system that allows local political subdivisions to levy their own property taxes. This change could significantly alter how property taxes are assessed and collected across Louisiana, potentially leading to increased state revenue. It is set to take effect on January 1, 2022, pending approval of an associated constitutional amendment. This modernization of tax collection mechanisms is viewed as a step toward more uniformity in tax administration across all parishes.

Summary

House Bill 305 proposes the implementation of a statewide ad valorem property tax levied at a rate of 100 mills on the dollar of assessed property value within the state. This initiative aims to centralize the assessment and collection processes for property taxes, establishing that the state will oversee the collection through local tax collectors. The bill requires that these collections be directed to the Louisiana Department of Revenue and ultimately into the state's general fund, reinforcing state control over local tax revenues.

Sentiment

The sentiment surrounding HB 305 has been mixed, with support largely coming from those who believe that a standardized property tax will streamline tax collection and bolster state budgets. These proponents argue that such a system would lead to more efficient fiscal management. However, there are concerns among critics regarding the increased state control over local matters and the potential implications this might have on community taxation autonomy. Skeptics express fears that such a tax could overburden property owners, particularly in areas where local taxes are already significant.

Contention

Notable points of contention include the impact of the proposed tax on homeowners and businesses who may face higher tax bills due to the new statewide levy. Arguments from opponents highlight the risks of centralization, fearing that local needs and contexts could be ignored in favor of broader state mandates. Additionally, the bill's requirement for the collection to be done in coordination with existing local tax systems raises questions about its feasibility and execution, with concerns that it may lead to confusion or inefficiencies during the transition period.