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2024 Third Extraordinary Session

HOUSE/SENATE BILL NO.###

BY REPRESENTATIVE/SENATOR NAME

AD VALOREM TAX: Provide for ad valorem property tax provisions

AN ACT

1 To amend and reenact R.S. 47:1702 through 1716, and to enact R.S. 47:1700, 1701, and 1717

2 through 1721 relative to administrative of ad valorem taxation; to provide for

3 definitions; to provide for classification of property; to provide for valuation of

4 property; to provide for reappraisal of property; to provide for a special assessment

5 level; to provide for ad valorem tax exemptions; to provide for the adjustment of

6 millages; to provide for ad valorem tax assessors; and provide for related matters.

7 Be it enacted by the Legislature of Louisiana:

8 Section 1. To amend and reenact and R.S. 47:1702 through 1716, and to enact R.S. 47:1700,

9 1701, and 1717 through 1721 to read as follows:

10 Subtitle III. Provisions Related to AD Valorem Taxes

11 Chapter 1.

12 §1702. §1700. Definitions

13 As used in this Subtitle, the following terms have the meaning ascribed to them

14 in this Section, unless the context clearly indicates otherwise:

15 * * *

16 (12) "Distributor" means a person engaged in the sale of products for resale

17 or further processing for resale.

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1 (13) "Business inventory" means the aggregate of those items of tangible

2 personal property that are held for sale in the ordinary course of business, are

3 currently in the process of production for subsequent sale. or are to physically

4 become a part of the production of such goods.

5 (a) "Business inventory" shall include the following:

6 (i) Goods or commodities awaiting sale that include but are not limited to the

7 merchandise of a retail or wholesale concern, the finished goods of a manufacturer.

8 the commodities from farms, mines, and quarries. and goods that are used or trade-

9 in merchandise and by-products of a manufacturer.

10 (ii) Goods or commodities that are in the course of production.

11 (iii) Raw materials and supplies that will be consumed in the Louisiana

12 manufacturing process.

13 (iv) Any item of tangible personal property owned by a retailer that is

14 available for or subject to a short-term rental and that will subsequently or ultimately

15 be sold by the retailer. For purposes of this Section. the term "short-term rental" shall

16 mean a rental of an item of tangible personal property for a period of less than three

17 hundred sixty-five days, for an undefined period. or under an open-ended agreement.

18 (b) "Business inventory" shall not include the following:

19 (i) Oil stored in tanks held by a producer prior to the first sale of the oil. and

20 oil otherwise exempt from ad valorem taxation pursuant to the provisions of law.

21 (ii) Items that would otherwise be considered inventory at any time following

22 the initial lease by the taxpayer of such items. The provisions of this Item shall not

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1 include the rental of tangible personal property as provided for in Item (a) (iv) of this

2 Paragraph.

3 (iii) Items that would otherwise be considered inventory any time after the

4 taxpayer has commenced depreciating the item on the taxpayer's federal tax return.

5 The provisions of this Item shall not include the rental of tangible personal property

6 as provided for in Item (a) (iv) of this Paragraph.

7 (iv) Items that have been subject to use by the taxpayer when owned for more

8 than eighteen months. The provisions of this Item shall not include the rental of

9 tangible personal property as provided for in Item (a)(iv) of this Paragraph.

10 (v) Items that are otherwise exempt from ad valorem taxation pursuant to law,

11 including, goods, commodities, or personal property stored in the state for use in

12 interstate commerce.

13 (14) "Manufacturer" shall mean one of the following:

14 (a) A person engaged in the business of working raw materials into wares

15 suitable for use or which gives new shapes, qualities. or combinations to matter which

16 already has gone through some artificial process.

17 (b) A person who meets the definition of "manufacturer" as provided in

18 Subparagraph (a) of this Paragraph and who has claimed an ad valorem exemption

19 pursuant to a contract with the State Board of Commerce and Industry as permitted

20 by law for manufacturing establishments, during the taxable year in which the local

21 inventory taxes were levied.

22 (15) "Retailer" means a person engaged in the sale of products to the ultimate

23 consumer. The term "retailer" shall also include a person engaged in the short-term

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1 rental of tangible personal property classified under code numbers 532412 and

2 532310 of the North American Industry Classification System published by the United

3 States Bureau of Census and who is registered with the Department of Revenue, or its

4 successor. as a retailer as defined in this Section.

5 §1701. Classification

6 A The classifications of property subject to ad valorem taxation and the

7 percentage of fair market value applicable to each classification for the purpose of

8 determining assessed valuation are as follows:

9 Classifications Percentages

10 1. Land 10%

11 2. Improvements for residential purposes 10%

12 3. Electric cooperative properties. excluding land 15%

13 4. Public service properties. excluding land 25%

14 5. Other property 15%

15 B. Use Value. Bona fide agricultural. horticultural. marsh. and timber lands.

16 shall be assessed for tax purposes at ten percent of use value rather than fair market

17

18 C.(1) Valuation. Each assessor shall determine the fair market value of all

19 property subject to taxation within his respective parish or district except public

20 service properties, which shall be valued at fair market value by the Louisiana Tax

21 Commission or its successor. Each assessor shall determine the use value of property

22 which is to be so assessed under the provisions of Subsection B of this Section.

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1 (2) No additional value shall be added to the assessment of land by reason of

2 the presence of oil. gas, or sulphur therein or their production therefrom. However,

3 sulphur in place shall be assessed for ad valorem taxation to the person. firm. or

4 corporation having the right to mine or produce the same in the parish where located,

5 at no more than twice the total assessed value of the physical property subject to

6 taxation, excluding the assessed value of sulphur above ground, as is used in sulphur

7 operations in such parish. Likewise. the severance tax shall be the only tax on timber:

8 however, standing timber shall be liable equally with the land on which it stands for

9 ad valorem taxes levied on the land. Notwithstanding the provisions of this

10 Subparagraph. the presence of oil or gas or the production thereof, may be included

11 in the methodology to determine the fair market value of an oil or gas well for ad

12 valorem taxes.

13 D. Review. The correctness of assessments by the assessor shall be subject to

14 review first by the parish governing authority, then by the Louisiana Tax Commission

15 or its successor. and finally by the courts.

16 E. Reappraisal. (1) All property subject to taxation shall be reappraised and

17 valued in accordance with this Section. at intervals of not more than four years.

18 (2) (a) In the year of implementation of a reappraisal as required in Paragraph

19 (1) of this Subsection, solely for purposes of determining the ad valorem tax imposed

20 on residential property subject to the homestead exemption as provided in the

21 constitution, if the assessed value of immovable property increases by an amount

22 which is greater than fift;y percent of the property's assessed value in the previous

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1 year. the collector shall phase-in the additional tax liability resulting from the

2 increase in the property's assessed value over a four-year period as follows:

3 (i) For purposes of calculating the ad valorem taxes on the property in the first

4 levy following reappraisal. the collector shall use the property's assessed value from

5 the previous year, which shall be called the base amount as used in this Paragraph,

6 and shall increase the portion of the assessed value of the property used to calculate

7 ad valorem taxes by adding an amount which is equal to one-fourth of the amount of

8 the increase in the property's assessed value as a result of the reappraisal to the base

9 amount. This resulting amount shall constitute the property's taxable value and shall

10 be used solely for purposes of calculating ad valorem taxes for that taxable year.

11 (ii) For purposes of calculating the ad valorem taxes on the property in the

12 second levy following reappraisal. the collector shall increase the portion of the

13 assessed value of the property used to calculate ad valorem taxes by adding an

14 amount which is equal to one-half of the amount of the increase in the property's

15 assessed value as a result of the reappraisal to the base amount. This resulting

16 amount shall constitute the property's taxable value and shall be used solely for

17 purposes of calculating ad valorem taxes for that taxable year.

18 (iii) For purposes of calculating the ad valorem taxes on the property in the

19 third levy following reappraisal, the collector shall increase the portion of the

20 assessed value of the property used to calculate ad valorem taxes by adding an

21 amount which is equal to three-quarters of the amount of the increase in the

22 property's assessed value as a result of the reappraisal to the base amount. This

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1 resulting amount shall constitute the property's taxable value and shall be used solely

2 for purposes of calculating ad valorem taxes for that taxable year.

3 (iv) In the fourth levy following reappraisal. the collector shall calculate ad

4 valorem taxes based on the property's full assessed value.

5 (b) The provisions of this Paragraph providing for a phase-in of additional ad

6 valorem tax liability following reappraisal shall cease to apply upon the transfer or

7 conveyance of ownership of the property. Following a transfer or conveyance, the

8 collector shall calculate ad valorem taxes based on the property's full assessed value.

9 (c) Property subject to the provisions of this Paragraph shall not be subject to

10 reappraisal by an assessor until after the four-year phase-in of the amount of the

11 increase in the property's assessed value is complete.

12 (d) The increase in assessed valuation of property phased-in under this

13 Paragraph shall be included as taxable property for purposes of any subsequent

14 reappraisals and valuation for millage adjustment pursuant to R.S. 47:1708(8). The

15 decrease in the total amount of ad valorem tax collected by a taxing authority as a

16 result of this phase-in of assessed valuation shall be absorbed by the taxing authority

17 and shall not create any additional tax liability for other taxpayers in the taxing

18 district as a result of any subsequent reappraisal and valuation or millage adjustment.

19 Implementation of this phase-in of increase in assessed valuation authorized in this

20 Paragraph shall neither trigger nor be cause for a reappraisal of property or an

21 adjustment of millages pursuant to the provisions of R.S. 47:1708(8).

22 (e) The provisions of this Paragraph shall not apply to the extent the increase

23 was attributable to construction on or improvements to the property.

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1 §1702. Special Assessment Level

2 A.(l)(a) The assessment of residential property receiving the homestead

3 exemption which is owned and occupied by any of the following and who meet all of

4 the other requirements of this exemption shall not be increased above the total

5 assessment of that property for the first year that the owner qualifies for and receives

6 the special assessment level. provided that such person or persons remain qualified

7 for and receive the special assessment level:

8 (i) People who are sixty-five years of age or older.

9 (ii) People who have a service-connected disability rating of fifty percent or

10 more by the United States Department of Veterans Affairs.

11 (iii) Members of the armed forces of the United States or the Louisiana

12 National Guard who owned and last occupied such property who are killed in action.

13 or who are missing in action or are a prisoner of war for a period exceeding ninety

14 days.

15 (iv) Any person or persons permanently totally disabled as determined by a .

16 final non-appealable judgment of a court or as certified by a state or federal

17 administrative agency charged with the responsibility for making determinations

18 regarding disability.

19 (b) Any person or persons shall be prohibited from receiving the special

20 assessment as provided in this Section if such person's or persons' adjusted gross

21 income, as reported in the federal tax return for the year prior to the application for

22 the special assessment. exceeds one hundred thousand dollars. For persons applying

23 for the special assessment whose filing status is married filing separately. the

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1 adjusted gross income for purposes of this Section shall be determined by combining

2 the adjusted gross income on both federal tax returns. The one hundred thousand

3 dollar limit shall be adjusted annually by the Consumer Price Index as reported by the

4 United States Government.

5 (c) An eligible owner or the owner's spouse or other legally qualified

6 representative shall apply for the special assessment level by filing a signed

7 application establishing that the owner qualifies for the special assessment level with

8 the assessor of the parish or. in the parish of Orleans. the assessor of the district

9 where the property is located.

10 (d) An owner who is below the age of sixty-five and who has applied for and

11 received the special assessment level may qualify for and receive the special

12 assessment level in the subsequent year by certifying to the assessor of the parish

13 that such person or persons' adjusted gross income in the prior tax year satisfied the

14 income requirement of this Section. The provisions of this Subparagraph shall not

15 apply to an owner who has qualified for and received the special assessment level for

16 persons sixty-five years of age or older or to such owner's surviving spouse as

17 described in Subparagraph B(l)(a) of this Section or for an owner who is

18 permanently totally disabled as provided for in Item (a)(iv) of this Paragraph.

19 (2) Any millage rate applied to the special assessment level shall not be subject

20 to a limitation.

21 B. Provided the owner is qualified for and receives the special assessment

22 level. the special assessment level shall remain on the property as long as:

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1 (l)(a) The owner who is sixty-five years of age or older, or that owner's

2 surviving spouse who is fifty-five years of age or older or who has minor children.

3 remains the owner of the property.

4 (b) The owner who has a service-connected disability of fifty percent or more.

5 or that owner's surviving spouse who is forty-five years of age or older or who has

6 minor children, remains the owner of the property.

7 (c) The spouse of the owner who is killed in action remains the owner of the

8 property.

9 (d) The first day of the tax year following the tax year in which an owner who

10 was missing in action or was a prisoner of war for a period exceeding ninety days is

11 no longer missing in action or a prisoner of war.

12 (e) Even if the ownership interest of any surviving spouse or spouse of an

13 owner who is missing in action as provided for in this Subsection is an interest in

14 usufruct.

15 (2) The value of the property does not increase more than twenty-five percent

16 because of construction or reconstruction.

17 C. A new or subsequent owner of the property may claim a special assessment

18 level when eligible under this Section. The new owner is not necessarily entitled to

19 the same special assessment level on the property as when that property was owned

20 by the previous owner.

21 D.(1) The special assessment level on property that is sold shall automatically

22 expire on the last day of December in the year prior to the year that the property is

23 sold. The property shall be immediately revalued at fair market value by the assessor

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1 and shall be assessed by the assessor on the assessment rolls in the year it was sold

2 at the assessment level provided for in R.S. 47:1701.

3 (2) This new assessment level shall remain in effect until changed.

4 E.(1) Any owner entitled to the special assessment level set forth in this

5 Section who is unable to occupy the homestead on or before December thirty-first of

6 a future calendar year due to damage or destruction of the homestead caused by a

7 disaster or emergency declared by the governor shall be entitled to keep the special

8 assessment level of the homestead prior to its damage or destruction on the repaired

9 or rebuilt homestead provided the repaired or rebuilt homestead is reoccupied by the

10 owner within five years from December thirty-first of the year following the disaster.

11 The assessed value of the land and buildings on which the homestead was located

12 prior to its damage shall not be increased above its assessed value immediately prior

13 to the damage or destruction described in this Paragraph. If the property owner

14 receives a homestead exemption on another homestead during the same five-year

15 period. the damaged or destroyed property shall not be entitled to keep the special

16 assessment level. and the land and buildings shall be assessed in that year at the

17 percentage of fair market value. In addition. the owner shall also maintain the

18 homestead exemption set forth in the constitution to qualify for the special

19 assessment level in this Paragraph.

20 (2) Any owner entitled to the special assessment level set forth in Paragraph

21 (1) of this Subsection who is unable to reoccupy his homestead within five years from

22 December thirty-first of the year following the disaster shall be eligible for an

23 extension of the special assessment level on the homestead for a period not to exceed

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1 two years. A homeowner shall be eligible for this extension only if the homeowner's

2 damage claim is filed and pending in a formal appeal process with any federal, state,

3 or local government agency or program offering grants or assistance for repairing or

4 rebuilding damaged or destroyed homes as a result of the disaster, or if a homeowner

5 has a damage claim filed and pending against the insurer of the property. The

6 homeowner shall apply for this extension of the special assessment level with the

7 assessor of the parish in which the homestead is located. The assessor shall require

8 the homeowner to provide official documentation from the government agency or

9 program evidencing the homeowner's participation in the formal appeal process or

10 official documentation evidencing the homeowner has a damage claim filed and

11 pending against the insurer of the damaged property.

12 (3) After expiration of the extension authorized in Paragraph (2) of this

13 Subsection, an assessor shall have the authority to grant on a case-by-case basis up to

14 three additional one-year extensions of the special assessment level.

15 F.(1) A trust shall be eligible for the special assessment.

16 (2) If a trust would have been eligible for the special assessment level pursuant

17 to this Subsection prior to the most recent reappraisal, the total assessment of the

18 property held in trust shall be the assessed value on the last appraisal before the

19 reappraisal.

20 §1703. Exemptions

21 A. Generally. (1) effecitve January 1, 1978, and thereafter, there The following

22 property shall be exempt from state, parish, and special ad valorem taxe~ all property_;_

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1 (1) Public lands and other public property used for public purposes. Land or

2 property owned by another state or owned by a political subdivision of another state

3 shall not be exempt under this Section.

4 (2) (a) (i) (aa) Property owned by a nonprofit corporation or association

5 organized and operated exclusively for religious, dedicated places of burial.

6 charitable. health, welfare. fraternal. or educational purposes. no part of the net

7 earnings of which inure to the benefit of any private shareholder or member thereof

8 and that is declared to be exempt from federal or state income tax.

9 (bb) Medical equipment leased for a term exceeding five years to a nonprofit

10 corporation or association that owns or operates a small, rural hospital and that uses

11 the equipment solely for health care purposes at the hospital. provided that the

12 property shall be exempt only during the term of the lease to such a corporation or

13 association, and further provided that "small, rural hospital" shall mean a hospital

14 that meets all of the following criteria:

15 (I) It has less than fifty Medicare-licensed acute care beds.

16 (II) It is located in a municipality with a population of less than ten thousand

17 that has been classified as an area with a shortage of health manpower by the United

18 States Health Service.

19 (ii) Property leased to a nonprofit corporation or association for use solely as

20 housing for homeless persons. as defined by regulation adopted by the Louisiana Tax

21 Commission or its successor provided that the term of the lease shall be for at least

22 five years. that as a condition of entering into the lease the property be in compliance

l 23 with all applicable health and sanitation codes for use as housing for homeless

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1 persons, that the lease shall provide that compensation to be paid the lessor shall not

2 exceed one dollar per year, and that such contract of lease shall recite that the

3 property shall be used exclusively for the purpose of housing the homeless, and

4 further provided that at such time as the property is no longer used solely as housing

5 for homeless persons. the property shall no longer be exempt from taxation.

6 (b) Property of a bona fide labor organization representing its members or

7 affiliates in collective bargaining efforts.

8 (c) Property of an organization such as a lodge or club organized for charitable

9 and fraternal purposes and practicing the same, and property of a nonprofit

10 corporation devoted to promoting trade. travel. and commerce, and also property of

11 a trade. business, industry or professional society or association. if that property is

12 owned by a nonprofit corporation or association organized under the laws of this

13 state for such purposes.

14 (d) (i) None of the property listed in this Paragraph shall be exempt if owned.

15 operated, leased, or used for commercial purposes unrelated to the exempt purposes

16 of the corporation or association.

17 (ii)(aa) None of the property listed in this Paragraph shall be exempt if the

18 property is owned by a nonprofit corporation or association and the governing

19 authority of the municipality or parish in which the property is located determines all

20 of the following:

21 (I) The property is leased as housing. is in a state of disrepair. and manifests

22 conditions which endanger the health or safety of the public.

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1 (II) The owner of the property habitually neglects maintenance of the property

2 as evidenced by three or more sustained code enforcement violations issued for the

3 property in the prior twelve months for matters that endanger the health or safety of

4 residents of the property or of persons in the area surrounding the property. For

5 purposes of this Clause. matters deemed to endanger health or safety include

6 structural instability due to deterioration: injurious or toxic ventilation:

7 contaminated or inoperable water supply: holes. breaks. rotting materials. or mold in

8 walls: roof defects that admit rain: unsecured overhang extensions in danger of

9 collapse: a hazardous electrical system: improper connection of fuel-burning

10 appliances or equipment: an inactive or inoperable fire detection system: an

11 unsecured or contaminated swimming pool: or any combination of these.

12 (bb) An ad valorem tax exemption denied or revoked pursuant to the

13 provisions of Subitem (aa) of this Item may be issued or reinstated if the governing

14 authority of the municipality or parish in which the property is located determines

15 that the conditions enumerated in Subitem (aa) of this Item no longer exist.

16 (3)(a) Cash on hand or deposit.

17 (b) Stocks and bonds. except bank stocks. the tax on which shall be paid by the

18 banking institution.

19 (c) Obligations secured by mortgage on property located in Louisiana and the

20 notes or other evidence thereof.

21 (d) Loans by life insurance companies to policyholders. if secured solely by

22 their policies.

23 (e) The legal reserve of domestic life insurance companies.

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1 (0 Loans by a homestead or building and loan association to its members, if

2 secured solely by stock of the association.

3 (g) Debts due for merchandise or other articles of commerce or for services

4 rendered.

5 (h) Obligations of the state or its political subdivisions.

6 (i) Personal property used in the home or on loan in a public place.

7 0) Irrevocably dedicated places of burial held by individuals for purposes of

8 burial of themselves or members of their families.

9 (k) Agricultural products while owned by the producer, agricultural

10 machinery, and other implements used exclusively for agricultural purposes, animals

11 on the farm, and property belonging to an agricultural fair association.

12 (1) Property used for cultural, Mardi Gras carnival, or civic activities and not

13 operated for profit to the owners.

14 (m) Rights-of-way granted to the State Department of Highways.

15 (n) Boats using gasoline as motor fuel.

16 (o) Commercial vessels used for gathering seafood for human consumption.

17 (p) Ships and oceangoing tugs, towboats, and barges engaged in international

18 trade and domiciled in Louisiana ports. However, this exemption shall not apply to

19 harbor, wharf, shed, and other port dues or to any vessel operated in the coastal trade

20 of the states of the United States.

21 (q) Materials, boiler fuels, and energy sources used by public utilities to fuel

22 the generation of electricity.

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1 (r) All incorporeal movables of any kind or nature whatsoever, except public

2 service properties, bank stocks, and credit assessments on premiums written in

3 Louisiana by insurance companies and loan and finance companies. For purposes of

4 this Section, incorporeal movables shall have the meaning set forth in the Louisiana

5 Civil Code of 1870. as amended.

6 (s) All artwork including sculptures, glass works, paintings, drawings. signed

7 and numbered posters. photographs, mixed media, collages, or any other item which

8 would be considered as the material result of a creative endeavor which is listed as a

9 consignment article by an art dealer.

10 (4) (a) Raw materials, goods, commodities. and articles imported into this state

11 from outside the states of the United States provided that one of the following

12 conditions is met:

13 (i) The imports remain on the public property of the port authority or docks

14 of the common carrier where they first entered this state.

15 (ii) The imports, other than minerals and ores of the same kind as any mined

16 or produced in this state and manufactured articles, are held in this state in the

17 original form in bales, sacks, barrels, boxes. cartons. containers, or other original

18 packages, and raw materials held in bulk as all or a part of the new material inventory

19 of manufacturers or processors, solely for manufacturing or processing.

20 (iii) The imports are held by an importer in any public or private storage in the

21 original form in bales, sacks, barrels, boxes. cartons. containers, or other original

22 packages and agricultural products in bulk. This exemption shall not apply to these

23 imports when held by a retail merchant as part of his stock-in-trade for sale at retail.

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1 (b) Raw materials. goods. commodities. and other articles being held on the

2 public property of a port authority. on docks of any common carrier. or in a

3 warehouse. grain elevator. dock. wharf. or public storage facility in this state for

4 export to a point outside the states of the United States.

5 (c)(i) Goods. commodities. and personal property in public or private storage

6 while in transit through this state which are moving in interstate commerce through

7 or over the territory of the state or which are in public or private storage within

8 Louisiana. having been shipped from outside Louisiana for storage in transit to a final

9 destination outside Louisiana. whether such destination was specified when

10 transportation began or afterward.

11 (d) Property described in this Paragraph. whether or not entitled to

12 exemption. shall be reported to the proper taxing authority on the forms required by

13 law.

14 (5) Motor vehicles used on the public highways of this state. from state. parish.

15 municipal. and special ad valorem taxes.

16 (6)(a) Notwithstanding any contrary provision of this Section. the State Board

17 of Commerce and Industry or its successor. with the approval of the governor. may

18 enter into contracts for the exemption from ad valorem taxes of a new manufacturing

19 establishment or an addition to an existing manufacturing establishment. on such

20 terms and conditions as the board. with the approval of the governor. deems in the

21 best interest of the state.

22 (b) The exemption shall be for an initial term of no more than five calendar

23 years. and may be renewed for an additional five years. All property exempted shall

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1 be listed on the assessment rolls and submitted to the Louisiana Tax Commission or

2 its successor, but no taxes shall be collected thereon during the period of exemption.

3 (c) The terms "manufacturing establishment" and "addition" as used herein

4 mean a new plant or establishment or an addition or additions to any existing plant

5 or establishment which engages in the business of working raw materials into wares

6 suitable for use or which gives new shapes, qualities or combinations to matter which

7 already has gone through some artificial process.

8 (7) Coal or lignite stockpiled in Louisiana for use in Louisiana for industrial or

9 manufacturing purposes or for boiler fuel. gasification. feedstock. or process

10 purposes.

11 (8) Notwithstanding any contrary provision of this Section, the State Board of

12 Commerce and Industry or its successor. with the approval of the governor and the

13 local governing authority, may enter into contracts granting to a property owner, who

14 proposes the expansion, restoration, improvement. or development of an existing

15 structure or structures in a downtown. historic, or economic development district

16 established by a local governing authority or in accordance with law. the right for an

17 initial term of five years after completion of the work to pay ad valorem taxes based

18 upon the assessed valuation of the property for the year prior to the commencement

19 of the expansion. restoration, improvement. or development. Contracts may be

20 renewed, subject to the same conditions. for an additional five years extending such

21 right for a total of ten years from completion of the work.

22 (9) (a) Notwithstanding any contrary provision of this Section. the authority or

23 district charged with economic development of each parish is hereby authorized to

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1 enter into contracts for the exemption from parish. municipal. and special ad valorem

2 taxes of goods held in inventory by distribution centers. In the absence of the

3 existence of an economic development authority or district. the parish governing

4 authority is authorized to grant contracts of exemption as are provided for in this

5 Paragraph.

6 (b) The contract for exemption shall be on the terms and to the extent up to

7 and including the full assessed valuation of the goods held in inventory, as the

8 economic development authority or district deems in the best interest of the parish.

9 However. prior to entering into each individual contract. the economic development

10 authority or district must request and receive written approval of the contract,

11 including its terms and an estimated fiscal impact from each affected tax recipient

12 body in the parish. as evidenced by a favorable vote of a majority of the members of

13 the governing authority of the tax recipient body. Failure to receive all required

14 approvals from the tax recipient bodies before entering into a contract shall render

15 the contract null and void and of no effect.

16 (c) The term "distribution center" as used herein means an establishment

17 engaged in the sale of products for resale or further processing for resale. The term

18 "goods held in inventory" as used herein means goods or products which have been

19 given new shapes, qualities, or combinations through some artificial process and does

20 not include raw materials such as natural gas. crude oil. sulphur, or timber or goods

21 or products held for sale to consumers.

22 (10)(a) Drilling rigs used exclusively for the exploration and development of

23 minerals outside the territorial limits of the state in Outer Continental Shelf waters

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1 which are within the state for the purpose of being stored or stacked for use outside

2 the territorial limits of the state, or for the purpose of being converted, renovated, or

3 repaired, and any property in the state for the purpose of being incorporated in, or to

4 be used in the operation of said drilling rigs.

5 (b) The exemption provided in this Paragraph shall be applicable in any parish

6 in which the exemption has been approved by a majority of the electors of the parish

7 voting thereon at an election called for that purpose.

8 (11)(a)(i) In addition to the homestead exemption, which applies to the first

9 seven thousand five hundred dollars of the assessed valuation of property, the next

10 two thousand five hundred dollars of the assessed valuation of property receiving the

11 homestead exemption that is owned and occupied by a veteran with a service-

12 connected disability rating of fifty percent or more but less than seventy percent by

13 the United States Department of Veterans Affairs shall be exempt from ad valorem

14 taxation. The surviving spouse of a deceased veteran with a service-connected

15 disability rating of fifty percent or more but less than seventy percent by the United

16 States Department of Veterans Affairs shall be eligible for this exemption if the

17 surviving spouse occupies and remains the owner of the property, whether or not the

18 exemption was in effect on the property prior to the death of the veteran. If property

19 eligible for the exemption provided for in this Item has an assessed value in excess of

20 ten thousand dollars. ad valorem property taxes shall apply to the assessment in

21 excess of ten thousand dollars.

22 (ii) In addition to the homestead exemption. which applies to the first seven

23 thousand five hundred dollars of the assessed valuation of property, the next four

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1 thousand five hundred dollars of the assessed valuation of property owned and

2 occupied by a veteran with a service-connected disability rating of seventy percent or

3 more but less than one hundred percent by the United States Department of Veterans

4 Affairs shall be exempt from ad valorem taxation. The surviving spouse of a deceased

5 veteran with a service-connected disability rating of seventy percent or more but less

6 than one hundred percent by the United States Department of Veterans Affairs shall

7 be eligible for this exemption if the surviving spouse occupies and remains the owner

8 of the property. whether or not the exemption was in effect on the property prior to

9 the death of the veteran. If property eligible for the exemption provided for in this

10 Item has an assessed value in excess of twelve thousand dollars. ad valorem property

11 taxes shall apply to the assessment in excess of twelve thousand dollars.

12 (iii) In addition to the homestead exemption, which applies to the first seven

13 thousand five hundred dollars of the assessed valuation of property. the remaining

14 assessed valuation of property receiving the homestead exemption that is owned and

15 occupied by a veteran with a service-connected disability rating of one hundred

16 percent unemployability or totally disabled by the United States Department of

17 Veterans Affairs shall be exempt from ad valorem taxation. The surviving spouse of a

18 deceased veteran with a service-connected disability rating of one hundred percent

19 unemployability or totally disabled by the United States Department of Veterans

20 Affairs shall be eligible for this exemption if the surviving spouse occupies and

21 remains the owner of the property, whether or not the exemption was in effect on the

22 property prior to the death of the veteran.

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1 (b) Notwithstanding any provision of the law to the contrary, the property

2 assessment of a property for which an exemption established pursuant to this

3 Paragraph has been claimed, to the extent of the applicable exemption. shall not be

4 treated as taxable property for purposes of any subseguent reappraisals and

5 valuation for millage adjustment purposes. The decrease in the total amount of ad

6 valorem tax collected by a taxing authority as a result of the exemption shall be

7 absorbed by the taxing authority and shall not create any additional tax liability for

8 other taxpayers in the taxing district as a result of any subseguent reappraisal and

9 valuation or millage adjustment. Implementation of the exemption authorized in this

10 Paragraph shall neither trigger nor be cause for a reappraisal of property or an

11 adjustment of millages.

12 (c) A trust shall be eligible for the exemption provided for in this Paragraph.

13 (12)(a) Except as otherwise provided herein. property owned or leased by.

14 and used by. a targeted non-manufacturing business in the operation of its facility,

15 including buildings, improvements, eguipment. and other property necessary or

16 beneficial to such operation. according to a program and pursuant to contracts of

17 exemption which contain terms and conditions. Land underlying the facility and other

18 property pertaining to the facility on which ad valorem taxes have previously been

19 paid, inventories. consumables. and property eligible for the manufacturing

20 exemption provided by Paragraph (6) of this Subsection, shall not be exempt under

21 this Paragraph.

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1 (b) Ad valorem taxes shall apply to the assessed valuation of the first ten

2 million dollars or ten percent of fair market value, whichever is greater. and this

3 amount of property shall not be exempt under this Paragraph.

4 (c) A targeted non-manufacturing business means at least fifty percent of such

5 business' total annual sales from a site or sites in the state is to out-of-state customers

6 or buyers. or to in-state customers or buyers but the product or service is resold by

7 the purchaser to an out-of-state customer or buyer for ultimate use, or to the federal

8 government. or any combination thereof.

9 (d) A contract for the exemption shall be available only in parishes which have

10 agreed to participate.

11 (13) There is hereby established an exemption from ad valorem tax for the

12 total assessed value of the homestead of the unmarried surviving spouse of a person

13 who died under the conditions enumerated in Item (a)(i) of this Paragraph. and if the

14 conditions established in Item (a) (i) of this Paragraph are met.

15 (a)(i) The exemption shall apply beginning in the tax year in which any of the

16 following persons died:

17 (aa) A member of the armed forces of the United States or Louisiana National

18 Guard who died while on duty.

19 (bb) A state police officer who died while on duty.

20 (cc) A law enforcement or fire protection officer who qualified for the salary

21 supplement authorized in Article VIL Section 14(0) (3) of the Constitution of

22 Louisiana who died while on duty or who would have qualified if he had completed

23 the first year of his employment before his death.

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1 (dd) An emergency medical responder, technician. or paramedic, as such

2 terms may be defined by law, who died while performing the duties of their

3 employment.

4 (ee) A volunteer firefighter, verified by the Office of the State Fire Marshal to

5 have died while performing firefighting duties.

6 (ii) (aa) The property is eligible for the homestead exemption and the property

7 was the residence of a person listed within Item (i) of this Subparagraph at the time

8 of that person's death.

9 (bb) The surviving spouse has not remarried.

10 (cc) The surviving spouse annually provides evidence of their eligibility for the

11 exemption in accordance with the requirements of Subparagraph (b) of this

12 Paragraph.

13 (b) Each assessor shall establish a procedure whereby a person may annually

14 apply for the exemption. Eligibility for the exemption shall be established by the

15 production of documents and certification of information by the surviving spouse to

16 the assessor as follows:

17 (i) In an initial application for the exemption, the surviving spouse shall

18 produce documentation issued by their deceased spouse's employer evidencing the

19 death.

20 (ii) For purposes of the continuation of an existing exemption, the surviving

21 spouse shall annually provide a sworn statement to the assessor attesting to the fact

22 that the surviving spouse has not remarried.

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1 (c) Once an unmarried surviving spouse has qualified for and taken the

2 exemption, if the surviving spouse then acquires a different property which qualifies

3 for the homestead exemption, the surviving spouse shall be entitled to an exemption

4 on that subsequent homestead, the exemption being limited in value to the amount of

5 the exemption claimed on the prior homestead in the last year for which the

6 exemption was claimed. The assessor may require the submission of certain

7 information concerning the amount of the exemption on the prior homestead for

8 purposes of determining the extent of the exemption available for the subsequent

9 homestead.

10 (d) A trust shall be eligible for the exemption provided for in this Paragraph.

11 (14)(a) All property delivered to a construction project site for the purpose of

12 incorporating the property into any tract of land, building. or other construction as a

13 component part. including the type of property that may be deemed to be a

14 component part once placed on an immovable for its service and improvement

15 pursuant to the provisions of the Louisiana Civil Code of 1870, as amended. The

16 exemption provided for in this Paragraph shall be applicable until the construction

17 project for which the property has been delivered is complete. A construction project

18 shall be deemed complete when construction is finished to the extent that the project

19 can be used or occupied for its intended purpose. A construction project shall not be

20 deemed complete during its inspection, testing, or commissioning stages, as defined

21 by reasonable industry standards.

22 (b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph, this

23 exemption shall not apply to any of the following:

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1 (i) Any portion of a construction project that is complete, available for its

2 intended use, or operational on the date that property is assessed.

3 (ii) For projects constructed in two or more distinct phases, any phase of the

4 construction project that is complete, available for its intended use, or operational on

5 the date the property is assessed.

6 (iii) Any public service property, unless the public service property is

7 otherwise eligible for an exemption provided by any other provision of law.

8 (lS)(a) In addition to the homestead, which applies to the first seven thousand

9 five hundred dollars of the assessed valuation of property, a parish governing

10 authority may approve an ad valorem tax exemption of up to two thousand five

11 hundred dollars of the assessed valuation of property receiving the homestead

12 exemption that is owned and occupied by a qualified first responder.

13 (b) For the purposes of this Paragraph. "first responder" shall mean a

14 volunteer firefighter who has completed within the tax year no fewer than twenty-

15 four hours of firefighter continuing education and is an active member of the

16 Louisiana State Firemen's Association or is on the departmental personnel roster of

17 the Volunteer Firefighter Insurance Program of the office of state fire marshal. For the

18 purposes of this Paragraph. "first responder" shall also mean a full-time public

19 employee whose duties include responding rapidly to an emergency and who resides

20 in the same parish in which their employer is located. The term includes the

21 following:

22 (i) Peace officer, which means any sheriff, police officer. or other person

23 deputized by proper authority to serve as a peace officer.

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1 (ii) Fire protection personnel.

2 (iii) An individual certified as emergency medical services personnel.

3 (iv)An emergency response operator or emergency services dispatcher who

4 provides communication support services for an agency by responding to requests

5 for assistance in emergencies.

6 (c) The exemption provided for in this Paragraph shall only apply in a parish

7 if it is approved by the parish governing authority.

8 (d) Each tax assessor shall establish a procedure whereby a person may

9 annually apply for the exemption which shall include the production of documents by

10 the first responder. In the application for the exemption. the first responder shall

11 produce documentation issued by his employer evidencing employment for the

12 taxable period for which the exemption is being requested.

13 (e) Notwithstanding any provision of the law to the contrary, any decrease in

14 the total amount of ad valorem tax collected by the taxing authority as a result of an

15 ad valorem tax exemption granted pursuant to this Paragraph shall be absorbed by

16 the taxing authority and shall not create any additional tax liability for other

17 taxpayers in the taxing district as a result of any subsequent reappraisal and valuation

18 or millage adjustment. Implementation of the exemption authorized in this Paragraph

19 shall neither trigger nor be cause for a reappraisal of property or an adjustment of

20 millages.

21 B.(1) There shall be an optional ad valorem tax exemption on items

22 constituting business inventory. including goods which are held for sale and goods in

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1 production or for ultimate consumption in the production of goods or services for

3 (2) The exemption provided for in this Subsection shall only apply in parishes

4 in which the sheriff. school board. and the parish governing authority elect to exempt

5 business inventory from ad valorem taxation.

6 (3) The exemption election shall be evidenced in writing and shall indicate if

7 the parish will implement the full exemption immediately or over a period not to

8 exceed five years. The election shall be made no later than August 1. 2025 and shall

9 be applicable to taxable periods beginning January 1. 2025. Any election made

10 pursuant to this Subsection shall be irrevocable.

11 (4) (a) A parish electing to exempt items constituting business inventory shall

12 receive a payment in accordance with Article VIL Section 34 of the Constitution and

13 R.S. 39:100.112.

14 (b) Any parish that elects to exempt one hundred percent of business

15 inventory from ad valorem tax immediately shall receive a payment equal to the

16 greater of thrice the amount of ad valorem taxes collected on business inventory

17 within the parish during the prior calendar year as calculated in the chart provided

18 for Subparagraph (d) or one million dollars.

19 (c) Any parish that elects to phase-in an exemption of business inventory from

20 ad valorem tax over a period not to exceed five years shall receive a payment equal to

21 the greater of the amount of ad valorem taxes collected on business inventory within

22 the parish during the prior calendar year as calculated in the chart provided for in

23 Subparagraph (d) or five hundred thousand dollars.

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1 .(.d).

Parish Payment amount if property is Payment amount if property is exempt from

immediately exempt from ad valorem tax ad valorem tax through a phase-out

ACADIA $8,064,687 $2,688,229

ALLEN $4,649,178 $1,549,726
ASCENSION $1s,ooo;ooo $10,000,000
ASSUMPTION $12,643,215 $4,214,405
AVOYELLES $3,311,623 $1,103,874
BEAUREGARD $10,698,616 $3,566,205
BIENVILLE $15,000,000 $9,803,655
BOSSIER $15,000,000 $10,000,000
CADDO $15,000,000 $10,000,000
CALCASIEU $15,000,000 $10,000,000
CALDWELL $1,000,000 $500,000
CAMERON $11,841,732 $3,947,244
CATAHOULA $1,000,000 $500,000
CLAIBORNE $1,000,000 $500,000
CONCORDIA $2,591,401 $863,800
DESOTO $4,506,854 $1,502,285
EAST BATON $15,000,000 $10,000,000
ROUGE
EAST CARROLL $2,942,280 $980,760
EAST FELICIANA $2,361,471 $787,157
EVANGELINE $9,014,235 $3,004,745
FRANKLIN $4,100,553 $1,366,851
GRANT $2,996,249 $998,750
IBERIA $15,000,000 $5,485,411
IBERVILLE $15,000,000 $10,000,000
JACKSON $2,334,131 $778,044
JEFF DAVIS $5,318,676 $1,772,892
JEFFERSON $15,000,000 $10,000,000
LAFAYETTE $15,000,000 $10,000,000
LAFOURCHE $15,000,000 $6,119,490
LASALLE $3,686,862 $1,228,954
LINCOLN $8,279,452 $2,759,817
LIVINGSTON $13,489,157 $4,496,386
MADISON $3,868,362 $1,289,454
MOREHOUSE $4,726,058 $1,575,353
NATCHITOCHES $6,077,027 $2,025,676
ORLEANS $15,000,000 $10,000,000
OUACHITA $15,000,000 $10,000,000
PLAQUEMINES $15,000,000 $8,442,726
POINT COUPEE $3,399,273 $1,133,091
RAPIDES $15,000,000 $10,000,000

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RED RIVER $1,421,703 $500,000

RICHLAND $5,095,444 $1,698,481
SABINE $2,046,475 $682,158
ST BERNARD $15,000,000 $10,000,000
STCHARLES $15,000,000 $10,000,000
ST HELENA $1,000,000 $500,000
ST JAMES $15,000,000 $10,000,000
ST JOHN $15,000,000 $10,000,000
ST LANDRY $15,000,000 $8,013,535
ST MARTIN $15,000,000 $6,128,714
ST MARY $15,000,000 $7,325,494
ST TAMMANY $15,000,000 $10,000,000
TANGIPAHOA $15,000,000 $7,294,402
TENSAS $1,000,000 $500,000
TERREBONNE $15,000,000 $8,835,679
UNION $1,428,985 $500,000
VERMILION $4,236,873 $1,412,291
VERNON $3,585,481 $1,195,160
WASHINGTON $4,904,267 $1,634,756
WEBSTER $9,632,542 $3,210,847
WEST BATON $15,000,000 $10,000,000
ROUGE
WEST CARROLL $1,277,144 $500,000
WEST $1,800,699 $600,233
FELICIANA
WINN $1,964,567 $654,856
1
2 (5) Property for which the exemption authorized in this Subsection has been

3 claimed shall not be treated as taxable property for purposes of any subsequent

4 reappraisals and valuation for millage adjustment purposes pursuant to R.S. 47:1708.

5 Any decrease in the total amount of ad valorem tax collected by a taxing authority as

6 a result of the ad valorem exemption authorized in this Subsection shall be absorbed

7 by the taxing authority and shall not create any additional tax liability for taxpayers

8 in the taxing authority district as a result of any subsequent reappraisal and valuation

9 or millage adjustment. Implementation of the exemption authorized in this

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1 Subsection shall neither trigger nor be cause for a reappraisal of property or an

2 adjustment of millages pursuant to R.S. 4 7: 1708.

3 which is declared to be exempt from taxation by Sections 20 and 21 of Article VII of

4 the Constitution and pursuant to the authority contained in Section 17 of Article VI of

5 the Constitution, and no other. Hov1ever, the mcemption for a bona fide homestead, as

6 defined in Subparagraph (1) of Paragraph A of Section 20 of Article VII of the

7 Constitution, for the years 197B through 19B1 only, and in the parish of Orleans

8 through 19B2 only, shall be five thousand dollars of assessed valuation. Effective on

9 the first day in January in each parish, in the year in which the appraisal and valuation

10 provisions of Paragraph (F) of Section 1B of Article VII of the Constitution of Louisiana

11 are implemented and thereafter, the

12 §1704. Homestead Exemption

13 A.(1) The exemption for a bona fide homestead exemption as defined in

14 Section 20 of Article VII of the Constitution of Louisiana. shall be seven thousand, five

15 hundred dollars of the assessed valuation.

16 (2) Any taxp~yer entitled ~o the homestead exemption set forth in Article VII,

17 Section 20 of the Constitution of Louisiana must own and occupy the homestead on

18 or before December thirty-first of the calendar year in which the exemption is claimed

19 regardless of its homestead exemption status as of January first of the calendar year

20 in which the homestead exemption is claimed.

21 * * *

22 C..(11 Penalties for false statements. Any person who, either in his individual

23 or representative capacity, knowingly makes any false statement or knowingly

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1 furnishes any false information in any affidavit or other document that he may

2 present for the purpose of procuring or attempting to procure this tax exemption or

3 benefit under the provisions of this Section, or who knowingly, for the purpose of

4 securing such tax exemption, presents any affidavit or other document containing any

5 false statement, or any person aiding, assisting or abetting any such person in

6 unlawfully and knowingly securing or attempting to secure any such tax exemption,

7 with knowledge of such false or illegal application or such false statement, shall be

8 guilty of a misdemeanor punishable as hereinafter provided.

9 ill Any assessor, deputy assessor, or other official, clerk or employee of the
10 state or any of its political subdivisions, who knowingly reports, lists, or claims any

11 property on which exemption from taxes under Sections 20 and 21 of l'.rticle VII of

12 the constitution pursuant to Article VIL Section 31 of the Constitution of Louisiana

13 and R.S. 47:1703 has been applied for, to be subject to a higher millage for taxation

14 purposes than is the true millage applicable thereto, shall be guilty of a misdemeanor,

15 punishable as hereinafter provided.

16 ill Upon conviction for a violation of any of the provisions of this Subsection
17 the offender shall be punishable by a fine of not less than one hundred dollars, nor

18 more than five hundred dollars, or by imprisonment of not less than one month, nor

19 more than six months, or both.

20 * * *

21 E.
22 * * *

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1 (2)(a) Any owner entitled to the special assessment level set forth in Article

2 VII, Section 18(G) of the Constitution of Louisiana R.S. 47:1702 who is unable to

3 occupy the homestead on or before December thirty-first of a future calendar year

4 due to damage or destruction of the homestead caused by a disaster or emergency

5 declared by the governor shall be entitled to keep the special assessment level of the

6 homestead prior to its damage or destruction on the repaired or rebuilt homestead

7 provided the repaired or rebuilt homestead is occupied by the owner within

8 five years from December thirty-first of the year following the disaster. The assessed

9 value of the land and buildings on which the homestead was located prior to its

10 damage shall not be increased above its assessed value immediately prior to the

11 damage or destruction described in this Paragraph. If the property owner receives a

12 homestead exemption on another homestead during the same five-year period, the

13 damaged or destroyed property shall not be entitled to keep the special assessment

14 level, and the land and buildings shall be assessed in that year at the percentage of

15 fair market value set forth in the constitution. In addition, the owner must also

16 maintain the homestead exemption set forth in Article VII, Section 20(A)(10) of

17 Article VII. Section 31 of the Constitution of Louisiana and this Section to qualify for

18 the special assessment level set forth in Article VII, Section 18(G) (5) of the

19 Constitution of Louisiana R.S. 47:1702.

20 * * *

21

22

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1 §1703.1. §1705. Permanent registration of homestead exemption; designated

2 parishes

3 A. The tax assessor for the parishes of Acadia, Allen, Ascension, Assumption,

4 Avoyelles, Beauregard, Bienville, Caddo, Calcasieu, Caldwell, Cameron, Catahoula,

5 Claiborne, Concordia, DeSoto, East Baton Rouge, East Carroll, East Feliciana,

6 Evangeline, Franklin, Grant, Iberia, Iberville, Jackson, Jefferson, Jefferson Davis,

7 Lafayette, Lafourche, LaSalle, Lincoln, Livingston, Morehouse, Natchitoches, Orleans,

8 Ouachita, Pointe Coupee, Rapides, Red River, Richland, Sabine, St. Bernard, St. Helena,

9 St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany,

10 Tangipahoa, Tensas, Terrebonne, Union, Vermilion, Vernon, Washington, Webster,

11 West Baton Rouge, West Carroll, West Feliciana, and Winn shall provide a form to

12 property owners within the parish for permanent registration for the benefits of the

13 homestead exemption provided for in R.S. 47:1703.

14 * * *

15 §1704.§1706. Homestead exemption audit program; city of New Orleans; fees

16 * * *

17 §1705.§1707. Information supplied to assessor and legislative auditor by tax

18 recipient agencies; additional notices

19 * * *

20 8.(l)(a) For any taxing authority with a governing authority membership

21 which is elected by the voters, increases in the millage rate in excess of the rates

22 established as provided by Article VII, Section 23 (B) of the Constitution of Louisiana

23 RS. 47:1708, but not in excess of the prior year's maximum authorized millage rate

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1 may be levied by two-thirds vote of the total membership of a taxing authority

2 without further voter approval but only after a public hearing held in accordance with

3 the open meetings law.

4 (b) (i) Any taxing authority with a governing authority membership which is

5 not elected by the voters may increase a millage rate in excess of the rates established

6 as provided in Article VII, Section 23 (B) of the Constitution of Louisiana R.S. 4 7:1708.

7 but not in excess of the prior year's maximum authorized millage rate. Such increased

8 millage shall also be limited to an amount which would increase the ad valorem taxes

9 collected by the taxing authority by no more than two and one-half percent of the

10 collections for the calendar year immediately preceding the year for which the

11 increased millage rate is effective.

12 * * *

13 (2) In order to accomplish this result, the following shall be mandatory:

14 (a) Each tax recipient body shall adopt an ordinance or resolution which shall

15 set forth and designate the adjusted millage rate as required by l\rticle VII, Section

16 23(B) of the Constitution of Louisiana R.S. 47:1708.

17 (b) Each tax recipient body shall adopt another separate ordinance or

18 resolution which shall provide for such millage rate increases by two-thirds vote and

19 shall set forth and designate not only the increased millage rate but also the adjusted

20 millage rate as required in Subparagraph (a) of this Paragraph abe¥e and by Article

21 VII, Section 23(B) of the Constitution of Louisiana R.S. 47:1708.

22 (c) (i) In addition to any notice requirements provided for in Article VII, Section

23 2 3 (C) of the Constitution of Louisiana R.S. 4 7: 1708 and this Section, any tax recipient

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1 body which proposes to hold a public hearing in any tax year for the purpose of

2 levying additional or increased millages on property without further voter approval

3 shall publish, by the date provided for in Item (ii) of this Subparagraph, public notice

4 of the date, time, and place of the hearing. The notice shall contain a statement that

5 the tax recipient body intends to consider at the hearing levying additional or

6 increased millage rates without further voter approval. It shall also contain the

7 following information relating to the proposal for the increased millage sought under

8 the provisions of Paragraph (1) of this Subsection.

9 * * *

10 (ii)-faa1 The notice shall be published on two separate days, occurring no less

11 than thirty days before the hearing date, in the official journal of the taxing authority,

12 and in another newspaper with a larger circulation within the taxing authority than

13 the official journal of the taxing authority, if there is one. On the first day of

14 publication, the notice shall also be posted on the Internet website of the taxing

15 authority, if such taxing authority maintains an Internet website. The Internet posting

16 shall remain active until such time as the taxing authority has taken action to approve

17 or disapprove, or has abandoned action on, the proposed millage increase.

18 (bb) Repealed by Acts 2018, No. 75, §2.

19 * * *

20 (d) In addition to the requirements for publication provided for in -th-is

21 Subparagraph (c) of this Paragraph, the tax recipient body shall issue a press release

22 to newspapers with substantial distribution within the parish of the tax recipient's

23 jurisdiction and to area broadcast media.

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1 * * *

2 D. In order to carry out the mandate of Article VII, Section 23(B) of the

3 Constitution of Louisiana RS. 47:1708. the legislative auditor is hereby authorized

4 and required to review the millages levied by each tax recipient body in each year

5 that reassessment occurs to determine whether the millages levied are in compliance

6 with the provisions of this Section and the constitution Constitution of Louisiana. The

7 legislative auditor is also authorized and required to review the millages levied by

8 each tax recipient body in each year in which an increase in millage is made by a two-

9 thirds vote of the total membership of the taxing authority under the provisions of

10 Article VII, Section 23 (C) of the Constitution of Louisiana RS. 4 7: 1708. to determine

11 whether the millage levied is in compliance with the provisions of this Section aRtl

12 the Constitution. The auditor shall order changes in the amount of millage levied if

13 the auditor determines thereafter that a mathematical error or mathematical errors

14 have been made in the calculation of the adjustment of millages as required by -th-is

15 Section and the Constitution of Louisiana R.S. 47:1708.

16 §1708. Adjustment of Ad Valorem Tax Millages

17 A Adjustments. Except as otherwise permitted in this Section, the total

18 amount of ad valorem taxes collected by any taxing authority in the year in which the

19 reappraisal and valuation provisions of R.S. 47:1701 are implemented shall not be

20 increased or decreased because of a reappraisal or valuation or increases or

21 decreases in the homestead exemption above or below the total amount of ad valorem

22 taxes collected by that taxing authority in the year preceding implementation of the

23 reappraisal and valuation. To accomplish this result the provisions of millage

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1 pursuant to R.S. 47:1701 shall be mandatory. Thereafter, following implementation

2 of each subsequent reappraisal and valuation required by R.S. 47:1701(E), the

3 millages as fixed in each such implementation shall remain in effect unless changed

4 as permitted by Subsection 8 of this Section.

5 8. Increases Permitted. Nothing herein shall prohibit a taxing authority from

6 collecting, in any subsequent year, a larger dollar amount of ad valorem taxes by (1)

7 levying additional or increased millages as provided by law or (2) placing additional

8 property on the tax rolls. Increases in the millage rate in excess of the rates

9 established as provided by Subsection A of this Section but not in excess of the prior

10 year's maximum authorized millage rate may be levied by two-thirds vote of the total

11 membership of a taxing authority without further voter approval but only after a

12 public hearing held in accordance with the open meetings law: however, in addition

13 to any other requirements of the open meetings law, public notice of the time, place,

14 and subject matter of such hearing shall be published on two separate days no less

15 than thirty days before the public hearing. The public notice shall be published in the

16 official journal of the taxing authority, and another newspaper with a larger

17 circulation within the taxing authority than the official journal of the taxing authority,

18 if there is one.

19 C. Implementation of the exemption authorized in R.S. 47:1703(8) shall

20 neither trigger nor be cause for a reappraisal of property or an adjustment of millages

21 pursuant to Subsection 8 of this Section.

22 D. Application. This Section shall not apply to millages required to be levied

23 for the payment of general obligation bonds.

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1 §1705.1.§1709. Public hearings for certain millage adjustments; certain parishes

2 * * *

3 8. For all nonelected taxing authorities which are subject to the provisions of

4 R.S. 47:1705 R.S. 47:1707 with respect to increases in millage rates without voter

5 approval, the public hearings for such purposes and public meetings at which a vote

6 is to be taken on a proposed millage rate increase for the ensuing year above the rate

7 levied for that millage in the immediately preceding year shall be scheduled as

8 follows:

9 * * *

10 §1706. §1710. Exemptions, solar energy systems; equipment attached to residential

11 buildings or swimming pools

12 A Notwithstanding the definitions of "real estate" and "personal property" in

13 Section 1702 R.S. 4 7:1700. any equipment attached to any owner occupied residential

14 building or swimming pool as part of a solar energy system is hereby declared to be

15 personal property and shall be exempt from ad valorem taxation, and assessors shall

16 not consider the value of such equipment in assessing the value of such buildings or

17 swimming pools.

18 * * *

19 §1707.§1711. Exemptions, agricultural machinery and implements, farm structures,

20 and timber logging equipment; definition

21 For the purpose of applying the exemption from ad valorem taxation provided

22 in R.S. 47:1703 Section 21 of Article VII of the Constitution of Louisiana, the term

23 "agricultural machinery and other implements used exclusively for agricultural

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1 purposes" shall mean agricultural and horticultural implements immediately and

2 directly employed in cultivation, production, and harvest of crops or in the raising

3 and management of livestock in use upon agricultural lands. The term also shall

4 include machinery for soil preparation and cultivation, agricultural drills and

5 planters, fertilizer spreaders, crop-dusting airplanes, harvesting and threshing

6 machinery, hay or grass mowers except lawn mowers, farm wagons and carts, milking

7 machines, farm structures, except a building used for a principal residence, on-farm

8 equipment for the handling or drying of agricultural or horticultural products, and

9 parts of any of the foregoing, all equipment utilized in the logging of timber whether

10 used by the owner or lessor of the agricultural land or on a contractual service basis

11 by someone other than the owner or lessor but shall exclude, except as otherwise

12 provided herein, bulldozers, earth moving, and land-clearing equipment utilized in

13 such agricultural activities on a contractual service basis by someone other than the

14 owner or lessor of the agricultural lands involved.

15 §1707.1.§1712. Agricultural byproducts

16 For the purpose of Section 21(C)(11) of Article VII of the Constitution of

17 Louisiana exemptions provided for in R.S. 47:1703(A)(3)(k). the phrase "agricultural

18 products while owned by the producer" shall include standing timber and the right

19 to cut and use standing timber, whether held by the owner of the land or any other

20 person.

21

22

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1 §1708. §1713. Exemption for property leased to nonprofit organizations for the

2 purpose of housing the homeless

3 For the purpose of applying the exemption from ad valorem taxation provided

4 in Article VII, Section (2 l)(B) (1) (b) of the Constitution of Louisiana in R.S.

5 47:1703(A)(2)(a)(ii), "term of the lease" shall mean the total length of the lease,

6 including renewals at the option of lessees, that the lessor obligates property to a

7 nonprofit corporation or association for use solely as housing for the homeless.

8 §1709.§1714. Exemption for intangible and incorporeal property

9 * * *

10 §1710.§1715. Homestead exemption; residential lessees; tax credits

11 A. The purpose of this Section is to partially implement the provisions of

12 f.rticle VII, Section 20(8) of the Constitution of Louisiana relative to the providing of

13 tax relief to residential lessees in order to provide equitable tax relief similar to that

14 granted to homeowners through homestead mcemptions.

15 .g.,. For purposes herein of the homestead exemption provided for in the

16 constitution. a residential lessee is defined as a person who owns and occupies a

17 residence, including mobile homes, but does not own the land upon which the

18 residence is situated.

19 G.- 8. A residential lessee shall be entitled to a credit against any ad valorem tax

20 imposed relative to the residence property, in an amount equal to the amount of tax

21 applicable on property with an assessed valuation of seven thousand five hundred

22 dollars or the actual amount of tax, whichever is less, provided the residential lessee

23 is not otherwise entitled to the homestead exemption.

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1 §1711.§1716. Waiver of homestead exemption

2 * * *

3 §1712. §1717. Application procedure; special assessment level

4 Any person who qualifies for the special assessment level set forth in Article

5 VII, Section 18(G) of the Constitution of Louisiana R.S. 47:1702 shall apply for the

6 special assessment by completing an application form certifying his qualifications for

7 the special assessment. Such application may be submitted in person or by first class

8 mail. The application form shall be designed by the tax commission Louisiana Tax

9 Commission and shall be provided to every assessor in this state. The assessor shall

10 not keep a copy of the applicant's federal or state income tax return or picture

11 identification of the applicant for his records.

12 §1713. §1718. Special assessment level for certain trusts

13 * * *

14 8.(1) If a trust would have been eligible for the special assessment level

15 pursuant to this Section prior to the most recent reappraisal, the total assessment of

16 the property held in trust shall be the assessed value on the last appraisal before the

17 reappraisal.

18 (2) If a trust has remitted a payment at the higher assessment level and is later

19 determined to be eligible for the special assessment level pursuant to this Subsection

20 Paragraph, then upon a showing by the trust of eligibility, any payment in excess of

21 the special assessment level shall abate subsequent years' ad valorem taxes on the

22 property until the payment has been exhausted.

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1 §1714.§1719. Exemption for property of a disabled veteran or a surviving spouse;

2 eligibility for certain trusts

3 A trust shall be eligible for the ad valorem tax exemption established under

4 Article VII, Section 21(K) of the Louisiana Constitution R.S. 47:1703(A)(11) which

5 provides an exemption for a disabled veteran or a surviving spouse if all of the

6 following apply:

7 (1) The settlor or settlors of the trust meet the conditions for eligibility

8 established under Article VII, Section 21(K) of the Louisiana Constitution R.S.

9 47:1703(A)(11).

10 * * *

11 (6) The settlor or settlors would have been eligible for the exemption

12 established under Article VII, Section 21(K) of the Louisiana Constitution R.S.

13 47:1703(A)(11) had they retained the naked ownership of the homestead.

14 §1715.§1720. Exemption for property of the surviving spouse of certain military

15 personnel, law enforcement and fire protection officers, and other first responders;

16 eligibility for certain trusts

17 A trust shall be eligible for the ad valorem tax exemption established under

18 Article VII, Section 21(M) of the Louisiana Constitution R.S. 47:1703(A)(12) which

19 provides an exemption for the surviving spouse of certain persons who died while

20 performing their duties as a member of the military, law enforcement or fire

21 protection officer, volunteer firefighter, medical responder, technician, or paramedic

22 as provided in the Louisiana Constitution, if all of the following apply:

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1 (1) The settlor or settlors of the trust meet the conditions for eligibility

2 established under Article VII, Section 21(M) of the Louisiana Constitution R.S.

3 47:1703(A)(12).

4 * * *

5 (6) The settlor or settlors would have been eligible for the exemption

6 established under Article VII, Section 21(M) of the Louisiana Constitution R.S.

7 47:1703(A)(12) had they retained the naked ownership of the homestead.

8 §1716.§1721. Exemption for property of certain veterans with disabilities;

9 applicability

10 The exemption provided for in J'.rticle VII, Section 21 (K) of the Constitution of

11 Louisiana R.S. 47:1703(A)(11) shall apply to ad valorem property taxes due

12 beginning in tax year 2023, regardless of when property tax assessment rolls are

13 completed for tax year 2023.

14 * * *

15 Section 3. This Act shall take effect and become operative if and when the

16 proposed amendment of Article VII of the Constitution of Louisiana contained in the

17 Act that originated as House/Senate Bill No. _ _ of this _ _ _ Session of the

18 Legislature is adopted at a statewide election and becomes effective.

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