Authorizes contracts of exemption from property tax for businesses. (2/3 - CA13s1(A)) (1/1/13) (OR DECREASE LF RV See Note)
Impact
If enacted, SB 331 could have significant implications for state laws regarding property tax exemptions. By allowing local parishes the ability to opt into a program that grants tax exemptions to qualifying businesses, the bill aims to streamline the process for businesses seeking lucrative tax incentives. Furthermore, it requires the legislature to establish a framework for how these contracts will be administered, including limitations and guidelines ensuring fairness and consistency across parishes.
Summary
Senate Bill 331 proposes a constitutional amendment to allow the State Board of Commerce and Industry, with gubernatorial approval, to enter into contracts that exempt certain businesses from ad valorem property taxes. This measure targets businesses that are considered 'eligible' and located in parishes that have opted into this program. The aim is to stimulate economic growth by incentivizing businesses to relocate or expand within the state, thereby fostering an environment conducive to economic development and job creation.
Sentiment
The sentiment surrounding SB 331 appears generally favorable among pro-business advocates who argue that it is necessary for Louisiana's economic development. Supporters believe that providing tax exemptions is a strategic way to attract businesses and revitalize local economies, especially in areas struggling with economic hardship. However, there may be caution from some lawmakers regarding how this measure could affect local government revenues and the equitable distribution of tax burdens among businesses and residents.
Contention
Notable points of contention involve concerns about the potential for unequal benefits granted to businesses based on their location and the impact on local tax revenues. Critics may argue that such tax exemptions could create disparities between different parishes, particularly those not opting into the program versus those that do. Additionally, there is apprehension regarding the long-term fiscal implications of allowing extensive tax exemptions, questioning whether the initial economic stimulation is worth the potential decline in local funding for essential services.
(Constitutional Amendment) Authorizes the granting of ad valorem tax exemption contracts by the Board of Commerce and Industry for certain businesses (EN DECREASE 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)
Establishes a program to authorize the granting of ad valorem tax exemption contracts by the Board of Commerce and Industry for certain businesses (EN DECREASE 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 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 authorize ad valorem tax exemptions in Orleans Parish to promote affordable housing. (2/3 - CA13s1(A)) (EN DECREASE 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)