Louisiana Senate Bill SB85

Louisiana 2015 Regular Session

• Introduced: 4/1/15
• Refer: 4/1/15
• Refer: 4/13/15

Caption

Constitutional amendment to exempt from ad valorem property taxes inventory held by manufacturers, distributors, and retailers and to prohibit adjustment of millages because of the implementation of the exemption. (2/3-CA13s1(A)) (1/1/16) (OR -$517,000,000 LF RV See Note)

Impact

If enacted, SB 85 will modify the existing structure of property taxation by specifically targeting inventory. The measure likely aims to stimulate the economy by making it less costly for businesses to maintain inventory in Louisiana, thereby promoting local manufacturing and distribution activities. Additionally, the amendment provides that a decline in tax collection resulting from the exemption cannot lead to an increase in millage rates, further protecting businesses from potential tax hikes related to inventory valuation changes.

Summary

Senate Bill 85 proposes a constitutional amendment that aims to exempt from ad valorem property taxes the inventory held by manufacturers, distributors, and retailers. This bill seeks to alleviate the tax burden on these businesses, potentially encouraging economic growth and investment in the state. By exempting inventory from property taxes, the bill aligns with efforts to enhance the competitiveness of Louisiana’s businesses, particularly in the manufacturing and distribution sectors.

Sentiment

Discussion around SB 85 appears to reflect a generally positive sentiment from business communities who would benefit from the exemption. Advocates argue that the measure supports local economic development by lowering operational costs. However, potential opposition might emerge from fiscal conservatives concerned about the long-term revenue implications of such tax exemptions for state and local governments.

Contention

Notably, a point of contention may arise regarding the balancing of tax revenue needs against economic incentives for businesses. Critics could argue that while the exemption may assist businesses, it places a strain on public resources by reducing overall tax revenues. This could potentially affect funding for public services, raising questions about fiscal responsibility and the equity of tax burdens among different entities within the state.