House Bill No. 217 proposes the enactment of a new section, R.S. 47:1703.2, which authorizes parishes in Louisiana to implement an optional ad valorem property tax exemption for rehabilitated blighted or derelict properties. The bill defines "blighted property" and "derelict property" and outlines the conditions under which the exemption can be applied. If a parish chooses to implement this exemption, it must apply to all millages within the parish and establish a process for property owners to apply, set rehabilitation standards, and create criteria for approval and revocation of exemptions. The bill specifies that for residential properties, up to 75% of the assessed value may be exempted for a maximum of 20 years, while for unimproved land, up to 25% may be exempted for a maximum of 10 years, with certain restrictions on the number of unimproved lots eligible for exemption.

Additionally, the bill allows parishes and municipalities to opt out of certain property tax limitations for properties within designated redevelopment areas that are subject to an adopted redevelopment plan. It also permits governing authorities to designate entities to assist in the creation and administration of these plans and requires financial oversight for any governing authority managing property tax revenues related to redevelopment. The provisions of this act will take effect on January 1, 2027, contingent upon the approval of a proposed amendment to Article VII of the Louisiana Constitution.