House Bill No. by Representative Ventrella amends existing law regarding the creation and taxation authority of economic development districts in Louisiana. The bill specifies that the boundaries of these districts must be a single, contiguous area with no property excluded. It retains the current provisions allowing these districts to engage in tax increment financing and levy certain taxes, including ad valorem and sales taxes, but introduces new procedures for the continuation of these taxes if they were initially levied without any qualified electors residing in the district.

Under the proposed law, if 30 or more qualified electors move into the district after the initial tax levy, the continuation of the tax will require voter approval through a petition process. The governing authority must call a special election to determine whether to continue the tax, and no new bonds or obligations can be issued after a petition is certified until the election results are promulgated. If the majority of voters do not approve the tax continuation, it will terminate after a specified period, although it may remain in effect to retire any outstanding obligations. Additionally, the bill limits the frequency of such elections to once every twelve months and ensures that existing obligations secured by tax proceeds are not impaired.

Statutes affected:
HB1181 Original: 33:32(B)