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)
Impact
If passed, SB 86 would ensure that any contracts for industrial tax exemptions entered into after December 31, 2023, would be bound by this new condition, thereby prioritizing funding for education over tax relief for manufacturing businesses. The legislation is designed to balance the interests of economic development with the necessity for sufficient funding for public education, a critical area often seen as underfunded. The intent is to prevent manufacturing tax exemptions from depriving educational institutions of necessary resources.
Summary
Senate Bill 86 aims to amend the Constitution of Louisiana with respect to contracts for industrial tax exemptions on ad valorem taxes. Specifically, the proposed amendment states that new manufacturing establishments or any expansions of existing manufacturing entities will not be exempt from taxes that are levied for the purposes of elementary and secondary education. This change is significant as it affects the conditions under which the Board of Commerce and Industry can grant tax exemptions, with implications for future industrial development and educational funding in the state.
Sentiment
The sentiment surrounding SB 86 appears to be divided among stakeholders. Supporters argue that linking tax exemptions to educational funding is a responsible approach that ensures broader societal benefits from industrial tax incentives. Conversely, opponents may fear that restricting tax exemptions could deter businesses from setting up operations in Louisiana, potentially hampering economic growth and job creation. The discussion reflects ongoing debates about the role of taxation and taxation priorities in state economic policies.
Contention
Notable points of contention center on the implications of the proposed change for both manufacturers and school funding. Proponents of the bill suggest that it will enhance educational opportunities by securing funding from industrial operations, while detractors worry that adding this constraint might diminish Louisiana's attractiveness as a site for new manufacturing investments. These conflicting perspectives position SB 86 at the intersection of economic interests and educational needs, illustrating the complex dynamics of state legislative priorities.
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)
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 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 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 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 provide relative to the ad valorem tax exemption for certain manufacturing facilities. (2/3 - CA13s1(A)) (OR SEE FISC NOTE LF RV)
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))