Louisiana House Bill HB522

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

(Constitutional Amendment) Exempts certain natural gas stores from ad valorem property taxes

Impact

The implementation of HB 522 could significantly impact state laws regarding property taxation, especially concerning energy resources. By offering a tax exemption to natural gas stored for servicing storage facilities, it might promote the growth of natural gas storage operations within Louisiana. Supporters argue that enhancing the fiscal conditions for these operations could attract more businesses and investments, bolstering the state's energy sector and potentially leading to job creation in this area.

Summary

House Bill 522 is a proposed constitutional amendment aimed at exempting natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities from ad valorem property tax in Louisiana. This bill seeks to amend Article VII of the Louisiana Constitution, which currently permits local governments to impose property taxes on movable and immovable property within their jurisdictions. If adopted, this amendment would change the tax regulations specifically concerning natural gas storage operations, facilitating a more favorable tax environment for these entities in the state.

Sentiment

The general sentiment around HB 522 appears to be mixed, with proponents highlighting the economic benefits and potential growth in the energy storage sector. On the other hand, some critics may express concern over the implications of tax exemptions for specific industries, as this might lead to reduced revenue for local governments that rely on property taxes to fund essential services. The support or opposition to the bill may ultimately hinge on economic beliefs regarding tax incentive effectiveness and resource allocation.

Contention

Key points of contention related to HB 522 may revolve around the balance between incentivizing industry growth and maintaining adequate fiscal resources for local governments. Those opposed to the exemption might argue that it undermines the tax base needed for public services. In contrast, supporters will likely stress the potential for economic benefit due to increased business activity and investment in natural gas storage facilities, highlighting a broader strategic perspective on energy resource management in Louisiana.