Bill > HB365

This bill provides an optional framework for Louisiana parishes to exempt or reduce ad valorem (property) taxes on business inventory, with specific conditions and financial incentives. Parishes can choose to either completely exempt business inventory from taxation or partially reduce its fair market value assessment, but only if the sheriff, school board, and parish governing authority unanimously agree. For parishes that choose to fully exempt business inventory before July 1, 2027, they can receive a one-time payment from the Revenue Stabilization Trust Fund, with amounts ranging from $500,000 to $15 million depending on their current business inventory tax collection. The bill defines "business inventory" as tangible personal property held for sale, in production, or physically becoming part of goods for sale. Importantly, any reduction in tax collection must be absorbed by the taxing authority without creating additional tax liability for local taxpayers, and such exemptions cannot trigger property reappraisals or millage adjustments. The provisions will apply to property tax years beginning on or after 2026, but the bill's effectiveness is contingent upon a related constitutional amendment being adopted in a statewide election.

Budget and Finance

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB365&sbi=y