Bill > HB366

This bill proposes a constitutional amendment that would allow Louisiana parishes to optionally exempt or reduce ad valorem taxes (property taxes) on business inventory, with specific conditions and safeguards. Under the proposed amendment, a parish can only implement such an exemption if the sheriff, school board, and parish governing authority all unanimously agree to do so. The bill defines "business inventory" as tangible personal property held for sale, in production for sale, or to be physically incorporated into goods for sale. If a parish chooses to fully exempt business inventory from ad valorem taxes, it would receive a one-time compensatory payment from the Revenue Stabilization Trust Fund, which would be distributed proportionally among the local taxing authorities to offset their potential revenue loss. The bill also adds a provision preventing the state legislature from mandating such an exemption, keeping it strictly optional for parishes. Additionally, the bill classifies public service property more specifically, creating separate tax assessment categories for different types of public service properties. If approved by voters in a statewide election on April 18, 2026, these changes would take effect for tax years beginning on or after January 1, 2026.

Budget and Finance, Justice

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB366&sbi=y