The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 2 Original 2023 Regular Session Allain
Present constitution provides that all property is subject to ad valorem taxation unless specifically
exempted.
Present constitution authorizes the State Board of Commerce and Industry, with gubernatorial
approval, to enter into contracts to exempt new and expanding manufacturing facilities from ad
valorem taxation.
Proposed constitutional amendment retains the ability of the board to enter into contracts to exempt
certain manufacturing facilities from certain ad valorem taxes.
Proposed constitutional amendment, beginning January 1, 2024, prohibits the board from providing
an exemption for a manufacturing facility for more than 60% of the assessed value of the property
for all local public school board ad valorem taxes and not more than 80% of the assessed value of
the property for all other ad valorem taxes.
Proposed constitutional amendment provides that the terms "new manufacturing establishment" and
"addition to an existing manufacturing establishment" do not include maintenance, required
environmental upgrades, miscellaneous capital improvements, or replacements of existing machinery
or equipment.
Proposed constitutional amendment provides that the tax commission establish criteria for
determining the value of property after ten years of use and that these criteria shall be uniform
throughout the state.
Proposed constitutional amendment phases out the ad valorem tax for goods held in inventory over
a five-year period in equal percentages, beginning with ad valorem taxes due in 2024 and completely
exempting inventory from ad valorem taxation for ad valorem taxes due on or after 2028.
Specifies submission of the amendment to the voters at the statewide election to be held on October
14, 2023.
(Amends Const. Art. VII, Sec. 21(F); adds Const. Art. VII, Sec. 21(O))