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 previous requirement that major movable or other movable property owned or used in Louisiana by nonresident companies be allocated solely 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 in the state. This methodology will be implemented gradually, starting with 25% of the assessed value allocated to Louisiana parishes and 75% to East Baton Rouge Parish for the taxable period beginning January 1, 2026, and transitioning to 100% allocated to parishes by January 1, 2029.

Additionally, the bill retains provisions that allow assessors to certify the presence of identifiable major movables in their parish, ensuring that the value of those movables is allocated accordingly. The Louisiana Tax Commission is tasked with publishing the total miles of active railroad track in the state and within each parish, which will be used to determine the allocation ratio. The bill is set to take effect upon the governor's signature or after the lapse of time for gubernatorial action, and it will apply to taxable periods beginning on or after January 1, 2026.

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