Requires the market approach to the valuation of the property of barge line, towing, and other water transportation companies. (gov sig)
Impact
The proposed legislation intends to streamline the appraisal process for specific public service properties, thereby potentially impacting property taxes for companies within this sector. By utilizing a market approach uniformly, the bill seeks to provide greater clarity and fairness in valuation, which may benefit both the government in receiving accurate tax revenue and the businesses being assessed. The uniformity could also reduce discrepancies and disputes related to property valuations among various assessors.
Summary
Senate Bill 279, introduced by Senator Chabert, focuses on the valuation of properties owned by barge line, towing, and other water transportation companies in Louisiana. The bill amends existing law to mandatorily require the Louisiana Tax Commission to use a market approach as the primary method for assessing the fair market value of these properties. This change aims to standardize the valuation process among assessors, ensuring consistency in assessment practices across the state for similar types of properties.
Sentiment
Sentiment surrounding SB 279 appears generally supportive as it addresses a specific need for a cohesive strategy in property valuation for the water transportation sector. The alignment with a standardized method of appraisal could be seen as a progressive move for the state, fostering a more business-friendly environment. However, there may be concerns from other areas regarding how rigorous or flexible the market approach may be in forming valuations.
Contention
While the bill seems bi-partisan in its intentions, there could be contention regarding the specifics of the market approach and its implementation practicality. Stakeholders might have varying opinions on how to define 'fair market value' and whether the market-driven methods will adequately reflect the complexities of local economies and operational realities faced by water transportation companies. Hence, the debate may not only hinge on the necessity of the law but also on the potential ramifications of its execution in the ever-evolving landscape of public service property management.
Provides for an income and corporation franchise tax credit for ad valorem taxes paid by certain barge line, towing, and other water transportation companies (OR -$887,000 GF RV See Note)
Urges and requests the Dept. of Economic Development to study the economic impact of the legislature authorizing a tax credit for certain barge line, towing, and water transportation companies
Urges and requests the Dept. of Economic Development to study the economic impact of the legislature authorizing a tax credit for certain barge line, towing, and water transportation companies
Removes certain water transportation companies from the definition of public service property for the purposes of assessment. (8/1/12) (OR DECREASE LF RV See Note)
Removes certain water transportation companies from the definition of public service property for purposes of assessment (EN SEE FISC NOTE LF RV See Note)
Provides with respect to the development of appraisals and assessments of public service properties by the La. Tax Commission (OR INCREASE GF EX See Note)
Provides with respect to the development of appraisals and assessments of public service properties by the La. Tax Commission (EN NO IMPACT GF EX See Note)