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 366 Original 2025 Regular Session Deshotel
Abstract: Authorizes a parish to elect to exempt business inventory from ad valorem taxes;
authorizes parishes to reduce the percentage of fair market value applicable to business
inventory; prohibits the legislature from enacting a mandatory exemption for business
inventory; and authorizes the state to make a one-time payment to parishes that elect to
exempt business inventory from ad valorem taxes.
Present constitution requires all property subject to ad valorem tax to be listed on the parish
assessment rolls at its assessed valuation which is a percentage of the property's fair market value.
Present constitution requires the percentage of fair market value to be uniform throughout the state
on the same class of property and requires assessors to reappraise and value property at intervals of
not more than four years.
Present constitution provides for the different classifications of property which corresponds with a
percentage of fair market value applicable to each classification.
Proposed constitutional amendment retains present constitution with regards to the assessment,
listing of properties, and reappraisal of properties but changes the classifications of property by
adding a separate classification for business inventory and public service property, excluding land
owned by a railroad company.
Proposed constitutional amendment adds authorization for a parish to elect to reduce the percentage
of fair market value applicable to business inventory, as defined in present law. Further provides that
the legislature may provide for implementation of the optional exemption for business inventory
which law is required to be enacted by favorable vote of two-thirds of the elected members of each
house. Furthermore, once enacted, any change to these laws will also require a favorable vote of
two-thirds of the elected members of each house of the legislature.
Proposed constitutional amendment prohibits the legislature from enacting a law requiring a taxing
authority to exempt business inventory from ad valorem tax.
Proposed constitutional amendment authorizes the state to make a one-time payment to each parish
that elects to irrevocably exempt business inventory from ad valorem tax. Further provides for the
process for making the payments and disbursing the monies to each parish that elects to exempt
business inventory.
Proposed constitutional amendment shall become effective on Jan. 1, 2027, and shall be applicable to tax years beginning on or after Jan. 1, 2027.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
November 3, 2026.
(Amends Art. VII, §18(A) and (B); Adds Art. VII, §§20.1 and 20.2)