LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 318 HLS 21RS 412
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 5, 2021 6:50 PM Author: DEVILLIER
Dept./Agy.: Economic Development / Local Governments
Subject: Industrial Tax Exemption Program Analyst: Greg Albrecht
TAX/AD VALOREM-MFG/EXEMP OR NO IMPACT LF RV See Note Page 1 of 1
(Constitutional Amendment) Provides for the ad valorem tax exemption for industrial manufacturers
Proposed law authorizes the Board of Commerce & Industry to grant ad valorem tax exemptions to new manufacturing
establishments or improvements to an existing establishment, for five initial years with a five-year renewal term, for up to
80% of the tax. Defined mega-projects may be granted exemption up to 93% of the tax. The required approval of the
governor is removed from the process.
Effective January 1, 2023. To be submitted to the electors at the statewide election to be held on November 8, 2022.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 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 2021-22 2022-23 2023-24 2024-25 2025-26 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
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. The Department of
Economic Development will continue to administer the program under the current rules and regulations and consistent with
existing executive orders, other than obtaining gubernatorial approval for the exemption contracts.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure. According to the
Department of Economic Development, the bill essentially codifies current practice of the program, except for the removal of
the governor’s approval for the exemption contracts. In all other regards, program administration will continue under the
current rules and regulations and consistent with existing executive orders.
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}
Christopher A. Keaton
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} Legislative Fiscal Officer