This bill enacts a new section, R.S. 47:1703.2, to provide for optional ad valorem tax exemptions for rehabilitated blighted or derelict properties in Louisiana. The legislation allows parish governing authorities to implement these exemptions, which would apply to all millages within the parish, subject to specific conditions and requirements outlined in the bill. Definitions for "blighted property" and "derelict property" are provided, along with the establishment of a process for property owners to apply for the exemption, rehabilitation standards, and criteria for approval. The exemptions can be significant, allowing up to 75% of assessed value for residential properties and 25% for unimproved land, with specific limitations on the duration of these exemptions.

Additionally, the bill allows parishes or municipalities to opt out of the property tax limitations for properties within designated redevelopment areas, provided they are part of an adopted redevelopment plan that utilizes property tax revenues for public financing mechanisms. The Louisiana Tax Commission is authorized to promulgate necessary rules for implementation, and the provisions of this Act will take effect on January 1, 2027, contingent upon the approval of a proposed constitutional amendment.