Louisiana Senate Bill SB350

Louisiana 2020 Regular Session

• Introduced: 2/28/20
• Refer: 2/28/20
• Refer: 3/9/20

Caption

Provides for ad valorem tax exemptions for certain property. (See Act)

Impact

The bill outlines that the standard exemption could provide an exemption of up to 80% of property taxes for a term of eight years, while local exemptions could potentially offer up to 100% for a term not exceeding fifteen years. This dual-exemption structure is designed to streamline the application process and encourages local governments to approve projects that align with state economic goals. Furthermore, established procedures will ensure that local authorities are involved in the decision-making process, promoting collaboration between state and local governance.

Summary

Senate Bill 350 aims to create a standard ad valorem tax exemption for capital investment projects in Louisiana. The bill establishes a framework for both standard and local ad valorem tax exemptions, requiring approval from the Board of Commerce and Industry and local governing authorities. This legislation is intended to incentivize capital investment in the state by significantly reducing the property tax burden on qualifying projects, thereby promoting economic growth and development.

Sentiment

Overall sentiment towards SB 350 appears to be positive among proponents who believe that tax exemptions will boost capital investment in Louisiana. Supporters argue that this bill will help attract businesses to the state, creating jobs and spurring economic activity. However, there may also be concerns from stakeholders who fear the long-term implications of reduced tax revenues for local government services and infrastructure.

Contention

While the bill has garnered support for its potential economic benefits, some points of contention include the balance between state-level incentives and local control over taxation. Critics may argue that such exemptions could lead to disparities in funding for essential services in areas struggling to attract investment. The discussion around this bill emphasizes the critical role of local governments in economic development initiatives and the potential trade-offs involved in offering significant tax breaks.