Louisiana Senate Bill SB54

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11
• Report Pass: 5/10/11
• Engrossed: 6/2/11
• Refer: 6/6/11

Caption

Requires certain public notice and hearings before agreements are entered into which have the effect of making property exempt from ad valorem taxes in certain parishes. (7/1/11) (RE SEE FISC NOTE LF RV See Note)

Impact

If enacted, SB 54 would fundamentally change how governmental entities manage agreements that impact tax exemptions, specifically in parishes with populations between 21,000 and 22,200. The bill's provisions necessitate public notice and hearings, which could potentially delay the execution of agreements that would exempt properties from ad valorem taxes. Furthermore, payments received in lieu of ad valorem taxes would need to be distributed to relevant tax recipient bodies, ensuring that those affected by property transfers are compensated appropriately.

Summary

Senate Bill 54 aims to impose requirements on governmental entities regarding the treatment of property exemptions from ad valorem taxes in parishes with specific population thresholds. The bill mandates that prior to entering into any cooperative endeavor or similar agreement that could result in making private property tax-exempt, the governing authority must hold a public hearing. This requirement is designed to ensure transparency and community involvement in decisions that affect local taxation and property rights.

Sentiment

The general sentiment surrounding SB 54 appears to be supportive from those concerned about public accountability and transparency in local governance. Proponents argue that public hearings allow community stakeholders to voice their opinions and grievances about potential tax exemptions. Conversely, opponents may view these requirements as impediments to timely decision-making, arguing that they could complicate processes necessary for economic development and compliance within the community.

Contention

Notable points of contention include the implications of the public notice and hearing requirements which some argue could introduce bureaucratic delays. Additionally, the bill exempts cooperative endeavor agreements entered into prior to July 1, 2011, which raises questions about fairness for agreements already established. The debate hinges on whether the added governance is a necessary safeguard or an unnecessary hindrance to local governmental operations.