LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 23 HLS 201ES 58
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 11, 2020 9:28 AM Author: DWIGHT
Dept./Agy.: Local Governments
Subject: Payments in Lieu of Ad Valorem Taxes Analyst: Greg Albrecht
TAX/AD VALOREM TAX EG SEE FISC NOTE LF RV See Note Page 1 of 1
(Constitutional Amendment) Authorizes certain agreements that provide for payments in lieu of ad valorem taxes (Item
#28)
Present constitution enumerates specific properties that are exempt from ad valorem taxation and provides that no other
property shall be exempt.
Proposed constitutional amendment adds to the exemptions property subject to an agreement for strategic investment in
which the property owner makes payments in lieu of ad valorem taxes, as provided by law. Eligible property includes
property of a new establishment or an addition to an existing establishment. Agreements may partially or fully exempt the
property from ad valorem tax.
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
This constitutional amendment provides local governments the ability to grant ad valorem tax exemptions to establishments
by agreement 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 effect the millage adjustment process and the
shifting of tax burdens among taxpayers.
Given the bill’s 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