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 417 Original 2021 Regular Session Ivey
Abstract: Amends Article VII of the La. Constitution in its entirety.
Present constitution authorizes taxation by the state, state debt, the state bond commission, and the
use of state funds.
Present constitution provides for the state budget and budgets, expenditure of state funds, the
general reporting of monies, investments by the state treasury, and taxation.
Present constitution further authorizes the following funds: the Wildlife and Fisheries Conservation
Fund, the Louisiana Education Quality Trust Fund, the Coastal Protection and Restoration Fund, the
Budget Stabilization Fund, the Higher Education Louisiana Partnership Fund, the Mineral Revenue
Audit and Settlement Fund, the Oilfield Site Restoration Fund, the Oil Spill Contingency Fund, the
Millennium Trust, the Louisiana Fund, the Millennium Leverage Fund, the Artificial Reef
Development Fund, the Agricultural and Seafood Products Support Fund, the Hospital Stabilization
Fund, the Louisiana Medical Assistance Trust Fund, the Revenue Stabilization Trust Fund, the
dedication of mineral revenues, the Revenue Sharing Fund, and Transportation Trust Fund.
Present constitution authorizes a sales and use tax exemption for food for home consumption as
defined in present law (R.S.47:305(D)(1)(n)).
Proposed constitutional amendment retains present constitution but requires any change to the
definition of food for home consumption to be enacted in law by a favorable vote of two-thirds of
the elected members of each house of the legislature.
Present constitution authorizes equal and uniform taxes to be levied on net income. Further
authorizes the rates for these taxes to be graduated according to the amount of the taxpayer's net
income; however, the state individual and joint income tax schedule of rates and brackets are
prohibited from exceeding the rates and brackets as they existed on Jan. 1, 2003.
Present constitution provides for a tax to be assessed, levied, collected, and paid upon the taxable
income of an individual at the following rates and brackets:
(1)2% on the first $12,500 of net income.
(2)4% on the next $37,500 of net income.
(3)6% on net income in excess of $50,000. Proposed constitutional amendment deletes the reference to the individual income tax rates and
brackets in existence on Jan. 1, 2003, in favor of specifying that a state tax levied on individual
income shall be levied at a flat rate which shall be established in law.
Present constitution authorizes federal income taxes paid to be allowed as a deductible item in
computing state individual, estates and trusts, and corporate income taxes for the same period.
Proposed constitutional amendment changes present constitution by eliminating the deductibility of
federal income taxes paid when computing individual, estates and trusts, and corporate income tax
liability.
Proposed constitutional amendment retains present constitution.
Proposed constitutional amendment creates the State Cybersecurity and Information Technology
Infrastructure Fund in the state treasury. Dedicates 0.0045% of monies in the state general fund that
are not allocated to the Bond Redemption and Security Fund or pledged in connection with the
issuance of bonds to be appropriated solely for purposes of enhancing and upgrading the state's
information technology infrastructure and to support cybersecurity needs.
Proposed constitutional amendment provides that unexpended and unencumbered monies in the fund
at the end of the fiscal year remain in the fund. The money in the fund shall be invested as provided
by law and any earnings realized on investment of money in the fund shall be deposited in and
credited to the fund.
Proposed constitutional amendment authorizes the establishment of a committee to assist the
legislature in consideration of priorities for the funding of information technology infrastructure
projects through appropriations from the fund with consent of the majority of the legislature.
Present constitution provides property subject to ad valorem taxation shall be listed on the
assessment rolls. Further provides property valuation shall be a percentage of fair market value.
Present constitution provides the percentage of fair market value shall be uniform throughout the
state upon the same class of property.
Present constitution provides for the classifications of property for the purposes of ad valorem tax
and provides the percentage of fair market value applicable to each classification as follows:
(1)Land 10%
(2)Improvements for residential purposes 10%
(3)Electric cooperative properties, excluding land15%
(4)Public service properties, excluding land 25% (5)Other property 15%
Proposed constitutional amendment repeals present constitution and provides classifications and
percentages shall be established in law, enacted by a legislative instrument which receives a
favorable vote of two-thirds of the elected members of each house of the legislature.
Proposed constitutional amendment provides that total amount of taxes collected by any taxing
authority in the first year following enactment of legislation shall not increase or decrease above or
below the amount of ad valorem taxes counted in the year prior to enactment.
Proposed constitutional amendment provides after the first year of enactment, each affected taxing
authority shall adjust millages without regard to millage limitations as necessary.
Present constitution establishes an exemption from state, parish, and special ad valorem property
taxes for the bona fide homestead of the property owner, for the first $7,500 of assessed valuation.
Proposed constitutional amendment retains present constitution and adds authorization for a parish
governing authority to adjust the amount of the homestead exemption by the adoption of a resolution
or ordinance, to be effective only if approved by the electors of the parish. One time millage
adjustments are required in instances where the homestead exemption is adjusted so as to ensure the
same amount of revenue for taxing authorities.
Present constitution authorizes a property tax 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 property taxes. The
exemption is subject to review by the Board of Commerce and Industry, and is subject to
local approval as provided by law.
(2)A local exemption for a term of no more than 15 calendar years for up to 100% of property
taxes. The exemption is subject to local approval as provided by law.
(3)An executive exemption for a term determined by the governor for up to 100% of property
taxes. The exemption requires approval of the governor and is subject to local approval as
provided by law.
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. Present constitution requires property to be listed on tax assessment rolls.
Proposed constitutional amendment repeals present constitution.
Present constitution defines manufacturing establishment as a new plant or establishment which
engages in the business of working raw materials into wares suitable for use or which gives new
shapes, qualities or combinations to matter which already has gone through some artificial process.
Proposed constitutional amendment repeals present constitution.
Present constitution defines addition as an addition to a plant or establishment which engages in the
business of working raw materials into wares suitable for use or which gives new shapes, qualities
or combinations to matter which already has gone through some artificial process.
Proposed constitutional amendment authorizes local ad valorem taxing authorities to enter into
agreements for payments in lieu of taxes with owners of non-residential immovable property.
Proposed constitutional amendment provides that these agreements cannot have a term of greater
than 40 years.
Proposed constitutional amendment provides that enactment of any law to administer proposed
constitutional amendment requires a favorable vote of two-thirds of the elected members of each
house of the legislature.
Proposed constitutional amendment repeals present constitution.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Nov. 8, 2022.
(Amends Const. Art. VII)