HLS 21RS-733 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 489
BY REPRESENTATIVE PRESSLY
TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Exempts items
constituting business inventory from ad valorem property tax
1 A JOINT RESOLUTION
2Proposing to add Article VII, Section 21(O) of the Constitution of Louisiana, relative to ad
3 valorem taxation; to provide with respect to ad valorem property tax; to exempt
4 certain items constituting business inventory from ad valorem property tax; to
5 provide for applicability; to provide for submission of the proposed amendment to
6 the electors; and to provide for related matters.
7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
8elected to each house concurring, that there shall be submitted to the electors of the state of
9Louisiana, for their approval or rejection in the manner provided by law, a proposal to add
10Article VII, Section 21(O) of the Constitution of Louisiana, to read as follows:
11 §21. Other Property Exemptions
12 Section 21. In addition to the homestead exemption provided for in Section
13 20 of this Article, the following property and no other shall be exempt from ad
14 valorem taxation:
15 * * *
16 (O) Items constituting business inventory. Business inventory shall include
17 goods held for sale, goods in production or for ultimate consumption in the
18 production of goods or services for sale, and goods utilized in marketing and
19 distribution activities.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-733 ORIGINAL
HB NO. 489
1 Section 2. Be it further resolved that the provisions of the amendment contained in
2this Joint Resolution shall be applicable to taxable years beginning on or after January 1,
32023.
4 Section 3. Be it further resolved that this proposed amendment shall be submitted
5to the electors of the state of Louisiana at the statewide election to be held on November 8,
62022.
7 Section 4. Be it further resolved that on the official ballot to be used at the election,
8there shall be printed a proposition, upon which the electors of the state shall be permitted
9to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
10follows:
11 Do you support an amendment to exempt certain items constituting business
12 inventory from ad valorem property tax? (Adds 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 489 Original 2021 Regular Session Pressly
Abstract: Establishes an ad valorem property tax exemption for items constituting business
inventory.
Present constitution authorizes local governments to impose ad valorem property taxes upon
movable and immovable property within their jurisdictions.
Proposed constitutional amendment exempts items constituting business inventory from ad
valorem property taxes. Further provides that business inventory items include goods held
for sale, goods in production or for ultimate consumption in the production of goods or
services for sale, and goods utilized in marketing and distribution activities.
Applicable to tax years beginning on or after Jan. 1, 2023.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 8, 2022.
(Adds Const. Art. VII, §21(O))
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.