The Louisiana House gave final legislative approval Thursday afternoon to two measures that would allow certain non-manufacturing businesses to be exempt from local property taxes to help with state industry recruitment efforts.
The House voted 94-0 for the Senate version of the proposed constitutional amendment, House Bill 674 which goes to voters Nov. 6. Then, the House voted 88-0 for its companion statutory change, HB694 which spells out details,
State Rep. Joel Robideaux, R-Lafayette, sponsored both of the measures which state economic development officials said are needed to help Louisiana entice certain types of businesses for which today’s tax burden is too high.
The legislation would allow a local option property tax exemption for corporate headquarters, distribution facilities, data services facilities, research and development operations and digital media and software development centers. Under the bill, the businesses would have to make a minimum $25 million investment, involve at least 50 new direct jobs with at least 50 percent of their sales out-of-state
The property tax exemption would have to be agreed to by the parish governing authority, the municipality, the local school board, the law enforcement district and the assessor.
Businesses would be eligible for a ten-year property tax exemption. But the exemption would not apply to the first $10 million of fair market value or the first 10 percent of the fair market value, whichever is greater. .