Constitutional amendment to provide that all 10-Year Industrial Exemption contracts renewed after 12/31/2023 shall be renewed only on condition that the exemption shall not apply to taxes levied for purposes related to elementary and secondary education. (2/3-CA13s1(A)) (OR INCREASE LF RV See Note)
Impact
The proposed change stands to significantly affect state revenue, particularly in the realm of funding for elementary and secondary education. By eliminating exemptions related to these educational taxes, the bill seeks to enhance financial contributions from manufacturing establishments to public education systems. This could mean increased educational resources and possibly a better-quality educational environment for students in Louisiana. However, its implications on the manufacturing sector's investment decisions, tax planning, and overall economic growth are areas of concern that will need monitoring as the bill progresses.
Summary
Senate Bill 126 proposes an amendment to the Louisiana Constitution concerning the renewal of Industrial Exemption contracts, specifically impacting ad valorem taxes on new manufacturing establishments. Under the current provision, the Board of Commerce and Industry, with gubernatorial approval, can enter into tax exemption contracts for up to ten years. SB126 stipulates that any renewals after December 31, 2023, will only be permissible if the exemptions do not apply to taxes allotted for elementary and secondary education. This change is positioned as a way to ensure that the educational sector receives adequate funding from these industrial taxes once exemptions are expired or renewed.
Sentiment
Discussions surrounding SB126 have elicited a mixture of support and opposition. Proponents argue that the bill safeguards educational funding, which is critical for the state's future workforce. They contend that manufacturing companies should contribute their fair share to public resources. On the flip side, opponents worry that tightening tax exemptions may discourage new investments in the state, potentially stifling economic development. The sentiment is generally characterized by a balancing act between enhancing public education funding and promoting a favorable environment for industrial growth.
Contention
Debate around SB126 particularly centers on the tension between funding educational needs and fostering a favorable climate for industries. Critics of the bill fear that it could deter businesses from establishing or expanding manufacturing operations due to increased tax burdens. Supporters assert that the long-term benefits of improved education funding outweigh short-term business concerns. Thus, the bill highlights broader discussions regarding the priorities of the state's fiscal policies and its impacts on future economic sustainability.
Constitutional amendment to provide that all 10-Year Industrial Exemption contracts entered into after 12/31/23 shall be entered into only on condition that the exemption shall not apply to taxes levied for purposes related to elementary and secondary education. (2/3-CA13s1(A)) (OR INCREASE LF RV See Note)
Constitutional amendment to prohibit contracts under the industrial property tax exemption program from exempting millages related to school funding. (2/3 - CA13s1(A)) (EG INCREASE LF RV See Note)
Constitutional amendment to provide for local governmental input in the Industrial Tax Exemption Program. (2/3 - CA13s1(A)) (EG SEE FISC NOTE LF RV See Note)
Constitutional amendment to phase out the tax on inventory and establish the maximum allowable exemption for the industrial property tax exemption program. (2/3 - CA13s1(A)) (EG SEE FISC NOTE GF RV See Note)
Constitutional amendment to require local government approval of the industrial property tax exemption. (2/3 - CA13s1(A)) (EG SEE FISC NOTE LF RV See Note)
Constitutional amendment to phase out the ad valorem tax on inventory and to reduce the industrial property tax exemption on millages related to school funding. (2/3 - CA13sl(A)) (OR DECREASE LF RV See Note)
Constitutional amendment to provide an exemption from ad valorem taxes levied on property which tax increases more than 10% than the previous year when due to required reassessment. (2/3 -- CA13s1(A))
Constitutional amendment to reduce 10-Year Industrial Exemptions originally granted before January 1, 2017, to 60% of the property originally exempted and extend the term for an additional two years. (2/3 - CA13s1(A))
Constitutional amendment to provide relative to the ad valorem tax exemption for certain manufacturing facilities. (2/3 - CA13s1(A)) (OR SEE FISC NOTE LF RV)