(Constitutional Amendment) Reduces the amount of ad valorem tax millage which may be imposed by the state (OR SEE FISC NOTE)
Impact
The bill's primary impact would be on state property tax regulations, specifically adjusting the maximum tax rate applied by the state. By lowering the millage rate, the bill seeks to potentially increase the net revenue retained by property owners. Therefore, proponents argue it could alleviate some financial burdens for taxpayers, and they advocate for its approval as an essential step in fiscal responsibility within state taxation policy.
Summary
House Bill 352, introduced by Representative Shadoin, proposes to amend Article VII, Section 19 of the Louisiana Constitution to reduce the maximum amount of ad valorem tax millage that may be imposed by the state. The current limit stands at 5.75 mills, and the proposed change will reduce this cap slightly to 5.74 mills. This constitutional amendment intends to be presented to the voters for approval in the statewide election scheduled for October 14, 2017, and if passed, would take effect on January 1, 2018.
Sentiment
The sentiment around HB 352 appears mixed. Supporters focus on the potential long-term benefits of lowering the tax burden on residents, which could be viewed as a positive move towards greater taxpayer relief and enhanced economic conditions. However, opponents may argue that even minor tax reductions may limit the state’s revenue capabilities, potentially impacting funding for essential public services and infrastructures such as education and healthcare.
Contention
Controversially, while the reduction of tax millage might seem beneficial from a taxpayer perspective, it raises questions about the adequacy of state funding for public services. Critics of the bill might express concerns that such a constitutional amendment could set a precedent for further tax reductions, undermining the state's ability to generate necessary revenues for critical programs. Hence, debates around HB 352 not only encompass fiscal policy but also underscore a wider discourse on the balance between tax relief and maintaining sufficient public service funding.
(Constitutional Amendment) Authorizes a taxing authority to levy a millage at a rate lower than the maximum authorized rate under certain circumstances (EN SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Authorizes an additional ad valorem tax exemption for certain property owners aged sixty-five and older (EN SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Authorizes certain agreements that provide for payments in lieu of ad valorem taxes (Item #28) (EG SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Increases the maximum annual amount of severance tax revenues that may be remitted to parishes in which the associated severance occurs (OR SEE FISC NOTE GF RV)
(Constitutional Amendment) Authorizes parishes to exempt business inventory from ad valorem taxes and authorizes parishes to reduce the percentage of fair market value applicable to business inventory (EN SEE FISC NOTE GF EX See Note)
(Constitutional Amendment) Authorizes the legislature to provide by law for the collection of all sales and use taxes imposed by any taxing authority in the state (OR SEE FISC NOTE GF RV)
(Constitutional Amendment) Limits eligibility of solar facilities from participating in the ad valorem tax exemption program known commonly as ITEP (OR SEE FISC NOTE LF RV)
(Constitutional Amendment) Prohibits ad valorem tax exemptions for property owned by nonprofit organizations used for commercial purposes (OR SEE FISC NOTE LF RV)