Provides for the assessment of bank stocks for purposes of calculating ad valorem tax liability of certain banks (OR DECREASE LF RV See Note)
Summary
HB 222 changes how Louisiana calculates ad valorem tax liability on bank stock. Under current law, shares of stock in banks and similar banking entities are assessed at 15% of fair market value, and the assessed value of certain bank-owned real estate, improvements, buildings, furniture, and fixtures is partially deducted from that stock assessment. This bill keeps the existing bank-stock valuation method in place but increases the deduction from 50% to 100% of the assessed value of those bank-owned assets.
In practical terms, the bill would reduce the taxable assessment of bank stock for affected banks by allowing the full assessed value of qualifying bank property to offset the stock assessment, rather than only half of that value. The change applies to property taxes beginning in tax year 2026 and becomes effective January 1, 2026. The bill amends R.S. 47:1967(F), which governs the listing and assessment of bank stock for local property tax purposes.
Impact
The bill directly amends Louisiana’s ad valorem tax statute for bank stock assessments. It does not change the 15% fair-market-value assessment rate for bank shares, but it does increase the offset allowed for bank-owned real estate and related tangible property from 50% to 100%, which would generally lower the taxable value of bank stock and reduce local property tax liability for affected banks. The practical fiscal effect is a likely reduction in local property tax revenue, especially for jurisdictions with banks holding significant taxable property.
Sentiment
The available context shows no recorded committee debate, votes, or amendments, so there is no documented opposition or support in the provided materials. Based on the bill text alone, the measure appears technical and tax-focused, aimed at adjusting the formula used to assess bank stock rather than making a broader policy change. The caption’s fiscal note language suggests the bill may reduce local revenues, which is the most likely source of concern if any opposition develops.
Contention
The main point of contention is likely fiscal: increasing the deduction from 50% to 100% lowers the assessed value of bank stock and may decrease ad valorem tax collections for local governments and taxing authorities. Banks and banking interests would likely favor the change because it reduces their property tax burden, while local taxing bodies may object because of the revenue loss. No specific stakeholder comments or recorded vote history were provided, so these concerns are inferred from the bill’s tax effects rather than from documented debate.