The bill, HB 366, proposes a constitutional amendment that allows parishes to exempt business inventory from ad valorem taxes and to reduce the percentage of fair market value applicable to such inventory. It establishes a new classification for business inventory and modifies existing classifications for public service property owned by railroad companies. The bill also mandates that the state make one-time payments from the Revenue Stabilization Trust Fund to parishes that choose to irrevocably exempt business inventory from these taxes. The payments will be distributed to local tax collectors, who will then allocate the funds to the relevant taxing authorities within the parish.

Key amendments adopted in the conference report include changing the name of the fund from the Revenue Stabilization Fund to the Revenue Stabilization Trust Fund, and adjusting the effective date of the proposed constitutional amendment to apply to tax years beginning on or after January 1, 2026. Additionally, the date for the statewide election to submit the proposed amendment to voters has been moved from November 3, 2026, to April 18, 2026. The report also rejects amendments that would have created a separate property tax classification for public service property owned by railroad companies.