LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 28 HLS 201ES 60
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 22, 2020 1:12 PM Author: DWIGHT
Dept./Agy.: Local Governments
Subject: Payments in Lieu of Ad Valorem Taxes Analyst: Greg Albrecht
TAX/AD VALOREM TAX RE SEE FISC NOTE LF RV See Note Page 1 of 1
Authorizes agreements between political subdivisions and taxpayers that may provide for certain payments in lieu of ad
valorem taxes (Item #28)
Present law enumerates specific properties that are exempt from ad valorem taxation and provides that no other property
shall be exempt.
Proposed law authorizes political subdivisions to participate in agreements for strategic investments that provide for
payments in lieu of ad valorem taxes. Eligible property includes property of new establishments or additions to existing
establishments. Ad valorem tax exemptions can be granted for terms 9 years in exchange for no more than 2 years of ad
valorem payments within an payment in lieu of taxation agreement.
Contingent upon adoption of the constitutional amendment contained in HB 23 of this session, to be submitted to the
electors at the statewide election to be held on November 3, 2020.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Annual Total $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
Proposed law provides local taxing authorities the procedures to grant ad valorem tax exemptions to establishments through
agreements providing payments in lieu of taxes. Although there may be numerous reasons for both local governments and
taxpayers to enter cooperative endeavor agreements to achieve community goals, the utilization of this authority may result
in lower local ad valorem tax revenue collections, in that taxpayer payments in lieu of ad valorem tax may be lower than the
ad valorem tax itself. Otherwise, taxpayers may not be inclined to enter the cooperative endeavor agreements. However the
payments in lieu of ad valorem tax may provide resources for particular local projects that might not be available from other
sources. Utilization of such agreements is speculative, and the ultimate local government aggregate revenue impacts can not
be projected. In addition, it is not clear how, if at all, these agreements would affect the millage adjustment process and the
shifting of tax burdens among taxpayers.
Given that the bill is contingent on a companion constitutional amendment on the November 3, 2020 ballot date, it seems
likely that the earliest fiscal year that could be affected would be FY22 for agreements affecting ad valorem taxes due in late
2021.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
HB28 Original: 33:9021(8), 33:9022(1)
HB28 Engrossed: 33:9021(8), 33:9022(1)
HB28 Reengrossed: 33:9021(8), 33:9022(1)