Louisiana 2023 Regular Session

Louisiana Senate Bill SB86

Introduced
3/29/23  
Introduced
3/29/23  
Refer
3/29/23  
Refer
3/29/23  
Refer
4/10/23  

Caption

Constitutional amendment to provide that all 10-Year Industrial Exemption contracts entered into after 12/31/23 shall be entered into only on condition that the exemption shall not apply to taxes levied for purposes related to elementary and secondary education. (2/3-CA13s1(A)) (OR INCREASE LF RV See Note)

Impact

If passed, SB 86 would ensure that any contracts for industrial tax exemptions entered into after December 31, 2023, would be bound by this new condition, thereby prioritizing funding for education over tax relief for manufacturing businesses. The legislation is designed to balance the interests of economic development with the necessity for sufficient funding for public education, a critical area often seen as underfunded. The intent is to prevent manufacturing tax exemptions from depriving educational institutions of necessary resources.

Summary

Senate Bill 86 aims to amend the Constitution of Louisiana with respect to contracts for industrial tax exemptions on ad valorem taxes. Specifically, the proposed amendment states that new manufacturing establishments or any expansions of existing manufacturing entities will not be exempt from taxes that are levied for the purposes of elementary and secondary education. This change is significant as it affects the conditions under which the Board of Commerce and Industry can grant tax exemptions, with implications for future industrial development and educational funding in the state.

Sentiment

The sentiment surrounding SB 86 appears to be divided among stakeholders. Supporters argue that linking tax exemptions to educational funding is a responsible approach that ensures broader societal benefits from industrial tax incentives. Conversely, opponents may fear that restricting tax exemptions could deter businesses from setting up operations in Louisiana, potentially hampering economic growth and job creation. The discussion reflects ongoing debates about the role of taxation and taxation priorities in state economic policies.

Contention

Notable points of contention center on the implications of the proposed change for both manufacturers and school funding. Proponents of the bill suggest that it will enhance educational opportunities by securing funding from industrial operations, while detractors worry that adding this constraint might diminish Louisiana's attractiveness as a site for new manufacturing investments. These conflicting perspectives position SB 86 at the intersection of economic interests and educational needs, illustrating the complex dynamics of state legislative priorities.

Companion Bills

No companion bills found.

Previously Filed As

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 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 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 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 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 HB269

(Constitutional Amendment) Increases the income threshold for purposes of qualifying for the special assessment level (OR DECREASE LF RV See Note)

LA HB36

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

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 HB300

(Constitutional Amendment) Increases the income threshold for purposes of qualifying for the special assessment level (EN DECREASE LF RV See Note)

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