Louisiana 2017 Regular Session

Louisiana Senate Bill SB26

Introduced
3/20/17  
Introduced
3/20/17  
Refer
3/20/17  
Refer
4/10/17  
Report Pass
4/17/17  

Caption

Constitutional amendment to prohibit contracts under the industrial property tax exemption program from exempting millages related to school funding. (2/3 - CA13s1(A)) (EG INCREASE LF RV See Note)

Impact

If enacted, SB 26 would significantly impact the financial landscape for local school boards by ensuring they are not deprived of essential funding through tax exemptions granted to manufacturing entities. This amendment is set to prohibit contracts entered into after January 1, 2019, from offering exemptions on school taxes, thus reinforcing the funding mechanisms that support local education. The bill maintains the ability for manufacturers to benefit from tax exemptions while ensuring that educational funding remains intact.

Summary

Senate Bill 26, introduced by Senator Morrell, proposes a constitutional amendment in Louisiana that aims to modify the existing industrial property tax exemption program. Currently, the State Board of Commerce and Industry can enter into contracts that exempt new and expanding manufacturing facilities from ad valorem taxes. The major change proposed by SB26 is the prohibition of exempting any portion of ad valorem taxes dedicated to school funding, specifically those imposed by or on behalf of city and parish school boards.

Sentiment

The sentiment surrounding SB 26 reflects a significant divide among legislators. Proponents argue that safeguarding school funding from tax exemptions is a vital step towards ensuring educational resources remain available for local students. Opponents, however, express concern that this limitation on tax exemptions could deter manufacturing companies from establishing or expanding in Louisiana, potentially harming economic development and job creation in the state.

Contention

The central contention in the debates over SB 26 concerns the balance between encouraging business development and ensuring sufficient funding for public education. Supporters of the bill argue that exempting school taxes from industrial tax incentives is necessary to protect local educational resources. In contrast, critics warn that such restrictions might negatively impact Louisiana's competitive edge in attracting manufacturing investments, potentially diminishing the economic growth that such establishments can bring.

Companion Bills

No companion bills found.

Previously Filed As

LA SB7

Constitutional Amendment to authorize a parish governing authority to increase the homestead exemption. (2/3- CA13s1(A))(1/1/27) (OR SEE FISC NOTE LF RV)

LA HB36

(Constitutional Amendment) Establishes certain property tax exemptions for capital investment projects (Item #28) (EG SEE FISC NOTE LF RV See Note)

LA SB88

Constitutional Amendment to authorize the local governing authority of a parish to provide an increase to the homestead exemption. (2/3-CA13s1(A)) (OR SEE FISC NOTE LF RV See Note)

LA SB56

Constitutional amendment to authorize the local governing authority of a parish to provide an increase to the homestead exemption. (2/3-CA13s1(A)) (OR SEE FISC NOTE LF RV)

LA SB115

Constitutional amendment to extend eligibility for the special assessment level for residential property receiving the homestead exemption to certain persons. (2/3 - CA13s1(A)) (1/1/27) (EG DECREASE LF RV See Note)

LA HB448

(Constitutional Amendment) Prohibits ad valorem tax exemptions for property owned by nonprofit organizations used for commercial purposes (OR SEE FISC NOTE LF RV)

LA HB214

(Constitutional Amendment) Authorizes a property tax exemption for blighted or derelict properties that have been rehabilitated (EN SEE FISC NOTE LF RV See Note)

LA SB57

Constitutional Amendment to remove the income limitation for persons age sixty-five or older that qualify for the special assessment level for residential property receiving the homestead exemption. (2/3-CA13s1(A)) (1/1/27) (EG DECREASE LF RV See Note)

LA HB464

(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)

LA HB41

(Constitutional Amendment) Establishes an ad valorem tax exemption for capital investment projects and for certain property subject to a cooperative endeavor agreement requiring the property owner to make payments in lieu of taxes (Item #28) (EG SEE FISC NOTE LF RV See Note)

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