LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 78 HLS 202ES 155
Bill Text Version: REENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 16, 2020 12:40 PM Author: BEAULLIEU
Dept./Agy.: Local
Subject: Payment in Lieu of Ad Valorem Taxes Analyst: Benjamin Vincent
TAX/AD VALOREM-MFG/EXEMP 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 #65)
Proposed law contains statutory language authorizing constitutional provisions in Act 370 of the 2020 Regular Session, which
will be put to voters statewide on November 3, 2020. Act 370 authorizes an agreement between political subdivisions and
owners of new or existing manufacturing establishments, where certain payments may be made to the taxing authority in
lieu of ad valorem taxes.
Proposed law provides that the ad valorem exemption agreed to shall be for a term of nine years, in exchange for a payment
of no greater than four years’ worth of ad valorem tax payments.
Passage of proposed law requires a two-thirds vote by each chamber of the legislature. Effective upon adoption of the
proposed Amendment contained in Act 370 of the 2020 during 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 governments the ability to grant nine years of ad valorem tax exemptions to manufacturing
establishments by agreement providing payments in lieu of taxes that are worth no more than four years of taxes.
Payments in lieu of ad valorem tax may provide resources for particular local projects that might not be available from other
sources, and at minimum may result in a shifting of tax burden among taxpayers. Utilization of such agreements is
speculative, and the ultimate local government aggregate revenue impacts cannot be projected.
Given the bill’s effective date, the earliest fiscal year that could be affected would be FY22 for agreements affecting ad
valorem taxes due for calendar year 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}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}