House Bill No. 366 proposes a constitutional amendment to allow parishes in Louisiana the option to exempt business inventory from ad valorem taxes or to reduce the percentage of fair market value applicable to such inventory. The bill amends Article VII, Sections 18(A) and (B) and adds Section 20.1 to the Louisiana Constitution. It establishes a new classification for business inventory, which will be assessed at 15% of its fair market value, and allows parishes to elect to reduce this percentage further. Additionally, the bill prohibits the legislature from mandating any taxing authority to exempt business inventory from ad valorem tax, ensuring that any such exemption remains optional for local governments.

The proposed amendment retains existing provisions regarding property assessments and reappraisals while introducing separate classifications for public service properties, including those owned by railroad companies and limited to barge line and towing vessels. The amendment is set to take effect on January 1, 2027, and will apply to tax years beginning on or after that date. The proposal will be submitted to voters in a statewide election scheduled for November 3, 2026. Notably, the bill has undergone amendments that removed provisions for state payments to parishes that choose to exempt business inventory and clarified the classification for barge line and towing vessels.