Louisiana 2012 Regular Session

Louisiana House Bill HB890

Introduced
3/12/12  

Caption

Repeals provisions that authorize local governmental subdivisions to create certain economic development districts

Impact

The repeal of these provisions will directly affect local governments' capacity to leverage TIF, which has been a significant mechanism for financing improvements and attracting businesses to specific regions. Local authorities will lose the power to designate economic development districts, which have previously enabled targeted infrastructure and community improvement projects. This change could hinder future economic growth initiatives at the local level and may lead to a reluctance among potential investors who typically look for robust local incentives.

Summary

House Bill 890 aims to repeal various provisions in the Louisiana Revised Statutes which currently authorize local governmental subdivisions, such as parishes and municipalities, to create economic development districts. These districts are often funded through tax increment financing (TIF), a tool that allows local authorities to use future tax revenue increases to pay for current improvements. By eliminating the facilitation for tax increment financing as a revenue-generating strategy, HB890 fundamentally alters the local governments' ability to finance economic development projects.

Sentiment

Discussions surrounding HB890 reflect mixed sentiments. Supporters of the repeal argue that these economic development districts can lead to misuse of funds and have often resulted in financial burdens for the municipalities involved without substantial returns. Conversely, opponents contend that repealing the authorization for TIF within local governments disregards the unique needs of different communities and diminishes the local autonomy that these districts once fostered. They fear that this change could stifle economic expansion and opportunities in areas dependent on such funding mechanisms.

Contention

The central point of contention revolves around the balance between state oversight and local control. Proponents of the repeal believe it simplifies economic regulation and limits the potential for mismanagement at the local level. However, critics argue that without these financial tools, local governments may struggle to finance critical development projects, thus leading to wider economic disparities across the state. The potential long-term implications of this bill suggest that vital local initiatives could be jeopardized, ultimately hindering the economic vitality of various communities.

Companion Bills

No companion bills found.

Previously Filed As

LA HB858

Provides relative to economic development districts created by local governmental subdivisions and for the use of tax proceeds collected by such districts (EN SEE FISC NOTE LF RV See Note)

LA HB891

Requires voter approval prior to the creation of certain economic development districts by local governmental subdivisions (OR NO IMPACT LF EX See Note)

LA SB88

Authorizes creation of a tax increment financing district for parishes of a certain size for economic development purposes. (gov sig)

LA SB716

Creates the Thomas H. Delpit Area Special District in the parish of East Baton Rouge and grants it certain TIF and tax authority to finance economic development projects within the district. (7/1/10) (EG DECREASE GF RV See Note)

LA SB475

Creates the Baker Main Street Economic Development District as a special taxing district. (8/1/22)

LA SB257

Authorizes certain additional tax increment finance authority for certain Tax Increment Development Corporations. (gov sig) (EN INCREASE LF See Note)

LA SB412

Authorizes creation of special districts within certain cities and provides for the governance and the powers and duties of the district, including tax increment finance authority. (gov sig)

LA HB850

Provides relative to the creation of and the levy of taxes by certain special districts

LA SB368

Authorizes the creation of cooperative economic development districts affiliated with certain Louisiana public postsecondary education institutions. (gov sig)

LA HB335

Creates the North Lake Charles Economic Development District and provides relative to the Southside Economic Development District of the City of Monroe

Similar Bills

LA HB891

Requires voter approval prior to the creation of certain economic development districts by local governmental subdivisions (OR NO IMPACT LF EX See Note)

LA HB858

Provides relative to economic development districts created by local governmental subdivisions and for the use of tax proceeds collected by such districts (EN SEE FISC NOTE LF RV See Note)

CA SB716

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TX HB3271

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TX SB515

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