Louisiana 2020 Regular Session

Louisiana House Bill HB850

Introduced
3/31/20  
Introduced
3/31/20  
Refer
5/4/20  

Caption

Provides relative to the creation of and the levy of taxes by certain special districts

Impact

One of the main provisions in HB850 is the requirement for voter approval for the levying of ad valorem, sales, and hotel occupancy taxes, while also retaining the option for local governments to pledge these tax increments for repaying revenue bonds. This ensures that any financial decisions by the development districts will have a democratic mandate, though specifics on how districts operate with or without voter populations are outlined. Furthermore, the bill requires these districts to conduct a public benefit analysis before making improvements to private properties, ensuring transparency and accountability in their fiscal decisions.

Summary

House Bill 850 seeks to amend existing laws related to the creation and operation of economic development districts in Louisiana, allowing these districts to engage in tax increment financing. The bill stipulates that such districts must have a single, contiguous boundary and ensures that no property within that boundary is excluded. This is a significant clarification aimed at streamlining the formation and governance of these economic districts, thereby fostering economic growth through targeted financial incentives.

Sentiment

The sentiment surrounding HB850 appears generally supportive among economic development advocates who argue that enhancing the power of these districts can stimulate local economies. However, there are concerns regarding the potential for mismanagement and the necessity of ensuring that public investments yield substantial benefits to the community, indicating a cautious optimism about the practicality of these provisions. Legislators see this bill as a necessary tool for stimulating growth, but must balance it with the need for due diligence in financial matters.

Contention

Points of contention primarily revolve around the implications of tax increment financing and the boundaries set for development districts. Critics worry that it may lead to hasty decisions without adequate oversight and potential misuse of public funds. The requirement for public hearings and detailed reporting on expenditures is seen as a safeguard against such outcomes, but it raises questions about the effectiveness and enforcement of these regulations. Moreover, the stipulation that no election is required if there are no qualified electors in a district has raised eyebrows, as it could result in district governance without direct voter input.

Companion Bills

No companion bills found.

Previously Filed As

LA HB1181

Provides relative to the creation of and levy of taxes by certain special districts (OR SEE FISC NOTE LF RV)

LA SB283

Creates the BLVD at Harding Area Special District in the city of Baton Rouge. (gov sig)

LA SB374

Provides for uniform procedure for the creation of college economic development districts for any college or university in any municipality or parish. (gov sig)

LA HB93

Provides relative to the authority of the Acadiana Regional Juvenile Justice District to levy certain taxes

LA SB282

Authorizes the creation of a cooperative economic development district affiliated with Baton Rouge Community College in East Baton Rouge Parish. (gov sig)

LA HB0058

AN ACT relating to taxation; requiring elections for the imposition of specified mill levies for recreational purposes, boards of cooperative educational services and special school taxes; specifying dates of the elections; specifying applicability; providing for the expiration of existing specified mill levies; and providing for an effective date.

LA SB187

Provides for the creation of the St. Martin Parish Economic and Industrial Development District. (8/1/25)

LA HB4308

Relating to the creation of industrial development districts in certain counties; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

LA SB443

Creates the New Orleans Hospitality and Entertainment District. (gov sig)

LA HB103

Provides relative to the Walnut Street Special District in the city of Monroe

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Chaptered