House Bill No. by Representative Mandie Landry seeks to amend R.S. 47:1708 to establish a clear definition regarding the prohibition of ad valorem tax exemptions for certain properties owned by nonprofit organizations. The bill introduces a definition for "commercial purposes," which is described as any business activity that generates revenues exceeding the costs associated with that activity. This definition is intended to clarify the circumstances under which nonprofit organizations would not be eligible for ad valorem tax exemptions on properties used for commercial activities.

The proposed law operates in conjunction with a proposed constitutional amendment that would enforce the prohibition on ad valorem tax exemptions for nonprofit organizations using their properties for commercial purposes. The bill specifies that the exemption for properties leased to nonprofit organizations for housing the homeless remains intact, while the new language aims to ensure that properties utilized for profit-generating activities do not benefit from tax exemptions. The effectiveness of this bill is contingent upon the approval of the proposed constitutional amendment in a statewide election.

Statutes affected:
HB659 Original: