Louisiana Senate Bill SB97

Louisiana 2023 Regular Session

• Introduced: 3/30/23
• Refer: 3/30/23
• Refer: 4/10/23
• Report Pass: 5/1/23

Caption

Provides relative to the ad valorem tax exemption in Louisiana for affordable housing. (2/3-CA13s1(A)) (EG DECREASE LF RV See Note)

Impact

The proposed constitutional amendment is intended to enhance local governments' ability to promote and encourage the development of affordable residential units. Local authorities would be permitted to create rules to manage these exemptions, including provisions for rescinding exemptions if properties fail to comply with governing authority rules. Furthermore, any reduction in ad valorem tax revenue due to these exemptions would be borne by the taxing authority rather than other taxpayers, ensuring that taxpayers are not adversely affected by the amendment.

Summary

SB97 proposes to amend the Louisiana Constitution to empower local governmental authorities to exempt properties designated for affordable housing from ad valorem taxes. The bill specifically aims to address the rising need for workforce housing by allowing local entities the flexibility to offer full or partial tax exemptions. This legislative move is seen as a direct response to challenges in affordable housing availability, making it possible for local governments to play a more significant role in fostering housing development that meets community needs.

Sentiment

Initial discussions surrounding SB97 indicate a supportive sentiment among many legislators and community advocates who argue that the bill can significantly alleviate housing shortages. Proponents see it as a crucial step toward addressing housing affordability challenges, particularly for low- and moderate-income families. Conversely, some stakeholders express concern that while the intentions are strong, the effectiveness of such local exemptions may require careful oversight to avoid unintended consequences such as inequitable tax burdens on other property owners.

Contention

Notable points of contention include the potential for disparities in how different localities implement these tax exemptions and the long-term financial implications for local governments. Critics warn that without sufficient monitoring and a clear framework for implementation, the bill could lead to conflicts in local governance and possible inequities in property tax obligations based on locality. Ensuring a balanced approach that protects both housing initiatives and the interests of the broader taxpayer base will be crucial as the bill moves forward.