Louisiana House Bill HB46

Louisiana 2023 Regular Session

• Introduced: 2/28/23
• Refer: 2/28/23
• Refer: 4/10/23
• Refer: 4/12/23
• Refer: 4/13/23
• Report Pass: 5/1/23
• Engrossed: 5/16/23
• Refer: 5/17/23
• Report Pass: 5/25/23
• Enrolled: 6/1/23
• Chaptered: 6/5/23
• Passed: 6/5/23

Caption

(Constitutional Amendment) Restricts eligibility of nonprofit organizations for property tax exemptions for residential property found to endanger public health or safety (EN SEE FISC NOTE LF RV See Note)

Impact

If enacted, HB 46 would significantly change how nonprofit organizations manage their properties, emphasizing the importance of maintaining safe and habitable conditions. Local authorities would have the authority to assess and determine the condition of such properties and revoke tax exemptions based on specific criteria outlined in the bill. The changes are intended to protect public health and ensure that properties are not detrimental to surrounding communities.

Summary

House Bill 46 aims to amend the Louisiana Constitution regarding ad valorem tax exemptions for nonprofit organizations, specifically addressing the condition of residential properties owned by such organizations. The bill proposes that properties owned by nonprofits that are in a state of disrepair—endangering public health or safety—will no longer be exempt from property taxes. This amendment seeks to establish clear criteria for determining when a nonprofit organization's residential property would be subject to tax based on neglect or health code violations.

Sentiment

The sentiment surrounding HB 46 appears to be positive among supporters who see it as a necessary step towards accountability for nonprofit organizations. Proponents emphasize the importance of maintaining standards in housing and ensuring that organizations fulfilling housing roles are upholding their responsibilities. However, concerns were raised by some nonprofit representatives who fear that the criteria for assessment may be too stringent or subject to misuse, potentially leading to excessive taxation on organizations that serve the community.

Contention

Notable points of contention include discussions on the feasibility of enforcing property conditions, the vagueness of what constitutes a 'state of disrepair,' and whether local authorities have adequate resources to implement these assessments effectively. These concerns highlight a broader debate over the balance between community safety and the operational viability of nonprofit organizations, particularly those catering to vulnerable populations, such as the homeless.