LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 526 HLS 21RS 202
Bill Text Version: ENGROSSED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 21, 2021 1:31 PM Author: NELSON
Dept./Agy.: State and Local Government
Subject: State and Local Fiscal Relations Analyst: Greg Albrecht
TAX EG SEE FISC NOTE See Note Page 1 of 1
(Constitutional Amendment) Provides for state and local revenue
Proposed law makes various changes to state and local fiscal relations. (a) raises the maximum amount of general purpose
millage rate that can be levied without voter approval, (b) repeals the prohibition of state sales tax on food for home
consumption, residential utilities, and prescription drugs, (c) repeals the authority for the legislature to authorize additional
local sales taxes with voter approval, (d) prohibits taxation of net income or capital, (e) prohibits state capital outlay funding
of nongovernmental entity projects, (f) requires annual reappraisal of property for ad valorem purposes, (g) modifies
provisions for exempt properties, (h) prohibits new and renewal industrial tax exemption contracts, (i) phases down the
homestead exemption to $2,000 of assessed value by 2026, (j) phases out the revenue sharing fund by FY27, (k) modifies
provisions of the Minimum Foundation Program and provides caps on the amount of state general funds that can be used to
support the program, and provides for more local authority to fund the program. Certain provisions are effective January 1,
2023, and some on July 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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $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
The proposed constitutional amendment makes significant changes to numerous major components of state and local
funding, and the fiscal relationship between the state and local governments. In general, the bill appears to intend to shift
funding responsibilities for governmental services away from state government and to local governments. The annual net
revenue and expenditure consequences to the state and to local governments can not be readily determined.
REVENUE EXPLANATION
The proposed constitutional amendment makes significant changes to numerous major components of state and local
funding, and the fiscal relationship between the state and local governments. In general, the bill appears to intend to shift
funding responsibilities for governmental services away from state government and to local governments. The annual net
revenue and expenditure consequences to the state and to local governments can not be readily determined.
Major components of the bill for which general dollar amounts can be readily associated include:
- reinstate state sales tax on food for home consumption, residential utilities, and prescription drugs- $1.104 billion
- prohibit individual and corporate income and franchise taxes - $4.431 billion
- phase down the homestead exemption by 73% - $589 million
- phase down state general fund allocations to the revenue sharing fund by 100% - $90 million
- phase down state general fund allocations to the Minimum Foundation Program to $2.610 billion - $965 million
Major components of the bill for which general dollar amounts can not be readily associated include:
- responsibility of costs of uncompensated care shifted to parish governing authorities;
- various local ad valorem tax millage and local sales tax provisions;
- prohibition of state capital outlay funding for non-governmental entity projects ;
- prohibition of new and renewal industrial tax exemption contracts.
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} Legislative Fiscal Officer
or a Net Fee Decrease {S}