Senate Bill No. 179, introduced by Senator Cathey, amends the allocation of ad valorem tax assessed values for certain properties owned by nonresident companies in Louisiana. The bill repeals the existing provision that allocated major movable or other movable property owned by nonresident companies to East Baton Rouge Parish. Instead, it establishes a new allocation methodology based on the ratio of active railroad track miles within a parish to the total miles of active railroad track in the state. This change aims to create a more equitable distribution of tax revenues among Louisiana parishes.

The bill also outlines a phased implementation of the new allocation methodology, starting with 33.33% of the assessed value allocated to Louisiana parishes and 66.67% to East Baton Rouge Parish for the taxable period beginning January 1, 2026. This allocation will shift to 66.67% for Louisiana parishes and 33.33% for East Baton Rouge Parish in the following year, and by January 1, 2028, 100% of the assessed value will be allocated to Louisiana parishes based on the established ratio. Additionally, the Louisiana Tax Commission is tasked with publishing the total miles of active railroad track in the state and within each parish to facilitate this allocation process. The bill is set to take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
SB179 Original: 47:1855(G)(2)