House Bill No. by Representative Hebert amends existing laws regarding ad valorem tax exemptions for business inventory. The bill allows parishes to phase in a 100% exemption of business inventory from ad valorem taxes over a period of seven years, an extension from the previous five-year period. Additionally, it stipulates that parishes opting for this exemption will receive a payment equal to either the amount of ad valorem taxes collected on business inventory for the 2026 tax year or $500,000, with a maximum payment cap of $10 million.

The bill also modifies the timeline for submitting documentation related to partial exemptions based on fair market value adjustments. The new requirement extends the submission period from ten to fifteen calendar days following the execution of the agreement between the sheriff, school board, and parish governing authority. These changes are set to take effect for property tax years beginning on or after January 1, 2026, and are contingent upon the adoption of a related constitutional amendment.

Statutes affected:
HB1124 Original: 47:2(C)(3), 47:3(A)(3)