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 specifically inserts language that defines "commercial purposes" as any business activity that generates revenues exceeding the costs associated with that activity. This definition is crucial for the proposed prohibition on tax exemptions for nonprofit properties used for commercial purposes, which is intended to align with a proposed constitutional amendment that would enforce this prohibition.

Additionally, the bill clarifies the existing exemption for properties leased to nonprofit organizations for housing the homeless, specifying that the "term of the lease" includes the total length of the lease and any renewals. The effectiveness of this bill is contingent upon the approval of the proposed constitutional amendment at a statewide election. The amendments aim to ensure that nonprofit organizations do not benefit from tax exemptions on properties that are utilized for commercial activities, thereby reinforcing the intended use of such exemptions for charitable purposes.

Statutes affected:
HB659 Original: