House Bill No. by Representative Mandie Landry proposes a constitutional amendment to Article VII, Section 21(B)(4)(a) of the Louisiana Constitution, which aims to prohibit ad valorem tax exemptions for property owned by nonprofit organizations when that property is used for commercial purposes. The bill clarifies that, regardless of whether the commercial activities relate to the nonprofit's tax-exempt purposes, such properties will not qualify for tax exemptions. This amendment seeks to ensure that nonprofit organizations cannot benefit from property tax exemptions on any commercial use of their properties.

The proposed amendment will be submitted to voters during the statewide election scheduled for November 3, 2026, and, if approved, will take effect on January 1, 2027, applying to all tax years beginning on or after that date. The amendment retains the existing provisions for nonprofit organizations but explicitly removes the allowance for tax exemptions on properties used commercially, thereby tightening the criteria for such exemptions.