HLS 23RS-272 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 29
BY REPRESENTATIVE TURNER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX INCREMENT FINANCING: Provides relative to the use of state sales tax increments
in certain local tax increment financing initiatives
1 AN ACT
2To amend and reenact R.S. 33:9033(B)(3), relative to tax increment financing mechanisms
3 authorized for local governmental subdivisions; to provide relative to the use of state
4 sales tax increments for such tax increment financing; to provide relative to sales tax
5 increment financing of local economic development projects; to provide relative to
6 the prohibition on the use of state sales tax increments for financing of such projects;
7 to revise provisions establishing an exception to the prohibition; and to provide for
8 related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 33:9033(B)(3) is hereby amended and reenacted to read as follows:
11 ยง9033. Sales tax increment financing
12 * * *
13 B. Notwithstanding the provisions of Subsection A of this Section, the
14 prohibition regarding the use of state sales tax increments for purposes of sales tax
15 increment financing shall not apply to:
16 * * *
17 (3) Any expansion of the project scope or extension of the use of the state
18 sales tax for an economic development project or program for which the cooperative
19 endeavor agreement initially authorizing the state sales tax increment was executed
20 before July 1, 1997 July 15, 2001, and, as amended or extended, did not expire on
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-272 ORIGINAL
HB NO. 29
1 or before August 1, 2019, provided that the state sales tax increment shall not be
2 extended beyond December 31, 2033 2045.
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 29 Original 2023 Regular Session Turner
Abstract: Provides relative to allowable uses of state sales tax increments in tax increment
financing arrangements for local economic development projects.
Present law authorizes local governmental subdivisions to issue revenue bonds payable
solely from an irrevocable pledge and dedication of up to the full amount of sales tax
increments to finance economic development projects within economic development areas
designated in accordance with present law. Provides that such tax increments include
portions of sales taxes imposed by all taxing authorities, except for the state and any political
subdivision with boundaries coterminous with the state, and paid by taxpayers in the
designated economic development area. Stipulates, however, that the use of state sales tax
increments for such tax increment financing is allowed in limited circumstances enumerated
in present law.
Present law allows the use of state sales tax increments in tax increment financing for an
expansion of a local economic development project's scope or extension of the use of the
state sales tax for an economic development project or program for which the cooperative
endeavor agreement initially authorizing the state sales tax increment was executed before
July 1, 1997, and did not expire on or before Aug. 1, 2019. Present law prohibits the
extension of the state sales tax increment beyond Dec. 31, 2033, for such project or program.
Proposed law amends present law to allow the use of state sales tax increments in tax
increment financing for an expansion of a local economic development project's scope or
extension of the use of the state sales tax for an economic development project or program
for which the cooperative endeavor agreement initially authorizing the state sales tax
increment was executed before July 15, 2001, and, as amended or extended, did not expire
on or before Aug. 1, 2019. Proposed law further amends present law to change the date
through which the state sales tax increment may be extended for such project or program
from Dec. 31, 2033, to Dec. 31, 2045.
(Amends R.S. 33:9033(B)(3))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.