LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 50 HLS 201ES 113
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 23, 2020 2:41 PM Author: IVEY
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 local taxing authorities to enter into cooperative endeavor agreements that provide for payments in lieu of taxes
(Item #28)
Proposed law provides for cooperative endeavor agreement between non-residential immovable property owners and one or
more taxing authorities, in which property owners make advance cash payments in exchange for an abatement of ad
valorem taxes which shall be used to offset future tax liabilities, to the extent provided in the agreement.
Contingent upon adoption of the constitutional amendment contained in HB 38 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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
The bill provides local governments the ability to grant ad valorem tax abatements to non-residential immovable property, in
lieu of advance cash payments, subject to statutory provisions. 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.
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:
HB50 Original: 33:9021(8), 33:9022(1)
HB50 Engrossed: 33:9022(1)
HB50 Reengrossed: 33:9022(1)