Provides with respect to ad valorem taxes on shares of bank stock. (1/1/26) (EN DECREASE LF RV See Note)
Impact
The bill's implementation is set to take effect on January 1, 2026, contingent on not being vetoed by the governor and subsequent approval by the legislature. If enacted, SB82 will modify the financial landscape for banks by allowing a 100% deduction of assessed real estate, improvements, buildings, furniture, and fixtures owned by banks from their total assessed bank stock value. This adjustment is anticipated to result in significant tax savings for banking institutions and could influence broader fiscal policies related to property taxation in the state.
Summary
Senate Bill 82, proposed by Senator Reese, aims to amend the existing laws surrounding ad valorem taxation specifically for bank stock. The bill seeks to increase the deductible percentage of assessed value for certain properties owned by banks when calculating their taxable bank stock. This legislative change reflects a broader initiative to adjust the tax code to better accommodate the operational realities of banking institutions within the state and lessen their tax burden.
Sentiment
The sentiment towards SB82 appears to be largely positive within the legislative discussions, reflecting a desire to support local banking entities. Proponents argue that the bill will help stabilize financial institutions by allowing them to retain more capital, which can subsequently be reinvested into the community. However, there may also be concerns raised by those who believe that such tax deductions could lead to increased burdens on other taxpayers or a reduction in state revenue that is critical to public services.
Contention
The main points of contention arise from the balance of providing tax relief to banks while ensuring equitable taxation practices across the community. Critics may voice concerns regarding how the alteration of tax structures for banks might impact the overall taxation scheme for property in Louisiana, particularly whether such deductions could disproportionately benefit banks compared to other businesses or sectors. The discussions surrounding SB82 encapsulate a broader dialogue about the role of taxation policy in fostering economic growth and ensuring fair contributions from all sectors.
Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property (Items #1 and 10) (EN SEE FISC NOTE LF RV See Note)
Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property (Items #1 and 10) (OR SEE FISC NOTE LF RV See Note)