LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 371 HLS 21RS 781
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 20, 2021 10:13 AM Author: IVEY
Dept./Agy.: Local Governments
Subject: Payments in Lieu of Ad Valorem Taxes Analyst: Greg Albrecht
TAX/AD VALOREM-MFG/EXEMP OR SEE FISC NOTE LF RV See Note Page 1 of 1
(Constitutional Amendment) Authorizes local taxing authorities to enter into cooperative endeavor agreements for the
purpose of authorizing payments in lieu of taxes
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 non-residential immoveable property subject to a cooperative
endeavor agreement between the owner and one or more taxing authorities, as provided by law, in which the property
owner makes payments in lieu of ad valorem taxes. Any such agreement shall be for a term not to exceed forty years.
Enactment of any law to administer this provision, shall require a vote of two-thirds of the legislature.
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 SEE BELOW SEE BELOW SEE BELOW $0
Annual Total $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
The amendment provides local governments the ability to grant ad valorem tax exemptions in lieu of other payments.
Although there may be numerous reasons for both local governments and taxpayers to enter such cooperative endeavor
agreements, 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.
Given the bill’s date for submittal to the electors of the state, it seems likely the earliest fiscal year that could be affected
would be FY24 for agreements affecting ad valorem taxes that would be due for calendar year 2023.
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