Bill Summary – FastDemocracy

LEGISLATIVE FISCAL OFFICE
                                                             Fiscal Note
                                                                                          Fiscal Note On:   HB   573 HLS 21RS          595
                                                                                        Bill Text Version: ENROLLED
                                                                                    Opp. Chamb. Action:
                                                                                         Proposed Amd.:
                                                                                            Sub. Bill For.:
         Date: June 15, 2021               8:19 AM                                                        Author: STEFANSKI
Dept./Agy.: LA Tax Appeals and LA Tax Commission
    Subject: Administration, Review & Adjudication of Ad Valorem Taxes                                    Analyst: Monique Appeaning
TAX COMMISSION, STATE                      EN SEE FISC NOTE SG EX See Note                                                       Page 1 of    1
Provides for the administration, review, and adjudication of ad valorem tax assessments
Proposed law changes the number of members on the Local Tax Division Nominating Committee from eight to ten and
expands qualifications thereof. Proposed law expands the jurisdiction of the board. Proposed law amends and adds to the
definition of “local collector.” Proposed law adds to present law “suits to recover taxes paid under protest” to the “filing of
petitions.” Proposed law adds relevant parties aggrieved by specific actions to the “filing of petitions.” Proposed law amends
“determination of which appellate court has jurisdiction.” Proposed law amends “effect of final judgment;” “escrow account;”
“notice of valuation, hearings, appeals;” “corrections and changes;” “review of appeals by tax commission;” “judicial
review;” “refund of taxes erroneously paid;” “suits to recover taxes paid under protest;” and provides for confidentiality of
forms. Proposed law repeals R.S. 47:1432(D) in its entirety. Proposed law shall have prospective effect and shall not apply
to any case pending before the Louisiana Tax Commission or in any court on 01/01/2021. The remaining provisions of this
proposed law are procedural and shall become operative on 01/01/22. Rule-making is subject to legislative oversight.
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.         SEE BELOW             SEE BELOW             SEE BELOW            SEE BELOW              SEE BELOW
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
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.         SEE BELOW             SEE BELOW             SEE BELOW            SEE BELOW              SEE BELOW
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
EXPENDITURE EXPLANATION
The Board of Tax Appeals (BTA) anticipates significant workload changes as its Local Tax Division takes on responsibility for
property tax cases. BTA reports that the proposed law may exacerbate a pre-existing need for additional office space. Any
other expenses are indeterminable and would depend on case volume and complexity. The agency believes these
expenditures could include additional mileage to travel for trials, the expense of court reporters, supplies, and other support.
Proposed law amends and enacts specific provisions in Title 47 related to the Board of Tax Appeals and the Louisiana Tax
Commission that provide for the administration, review and adjudication of ad valorem assessments. Proposed law may
create a net indeterminable workload impact for the LA Tax Commission, local taxing authorities, and local governing
authorities associated with appeals, reviews of appeals and other activities addressed in this measure. The net impact of
these changes are indeterminable. The LA Tax Commission reports no expenditure impact. Individual taxing and local
governing authorities may realize disparate impacts based on local conditions and individual appeal decisions that are
speculative and indeterminable.
Proposed law provides the option to file cases at the BTA as it extends jurisdiction to the BTA over legality challenges in
property tax and utility property appeals. As amended, the BTA will also be a trial court over appeals from the Louisiana Tax
Commission value decisions. Currently, these appeals are tried exclusively in district courts. Value cases are more
numerous, with approximately 1,000 per year adjudicated by the Louisiana Tax Commission. However, historically less than
5% are appealed to the courts each year.
The Legislative Fiscal Office cannot corroborate the information reported by the Board of Tax Appeals; however, the
proposed law authorizes the Board of Tax Appeals as an option instead of the district court for appeals. Any exposure to the
increased cost to the Board of Tax Appeals would depend upon a taxpayer choosing BTA as his or her option to appeal.
REVENUE EXPLANATION
Proposed law may result in an indeterminable increase in SGR revenue to the BTA from case filing fees. The BTA charges the
same amount as for a case filed in district court ($450). This bill provides the option to file cases at the BTA. The bill extends
jurisdiction to the BTA over legality challenges in property tax and utility property appeals. The Local Tax Division does not
receive any SGF appropriations. Local funding sources are used to the extent that expenses are not covered by additional
self-generated revenue from case filing fees.
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}
    13.5.2 >= $500,000 Annual Tax or Fee                                                                   Alan M. Boxberger
                                                          6.8(G) >= $500,000 Tax or Fee Increase
              Change {S & H}                                        or a Net Fee Decrease {S}              Staff Director
Statutes affected: 
HB573 Original: 47:1402(D)(2), 47:1403(B)(6), 47:1407(3), 47:1418(4), 47:1431(B), 47:1436(B), 47:1437(A), 47:1856(D)(2), 47:1857(B)(1), 47:1989(B), 47:1998(A)(1), 47:2132(D), 47:2134(B)(1)
HB573 Engrossed: 47:1402(D)(2), 47:1403(B)(6), 47:1407(3), 47:1418(4), 47:1431(B), 47:1436(B), 47:1437(A), 47:1856(D)(2), 47:1857(B)(1), 47:1989(C), 47:1998(A)(1), 47:2132(D), 47:2134(B)(3)
HB573 Reengrossed: 47:1402(D)(2), 47:1403(B)(6), 47:1407(3), 47:1418(4), 47:1431(B), 47:1432(A), 47:1436(B), 47:1437(A), 47:1439(C), 47:1856(D)(2), 47:1857(B)(1), 47:1989(C), 47:1998(A)(1), 47:2132(D), 47:2134(B)(3), 47:1432(D)
HB573 Enrolled: 47:1402(D)(2), 47:1403(B)(6), 47:1407(3), 47:1418(4), 47:1431(B), 47:1432(A), 47:1436(B), 47:1437(A), 47:1439(C), 47:1856(D)(2), 47:1857(B)(1), 47:1989(C), 47:1998(A)(1), 47:2132(D), 47:2134(B)(3), 47:1431(D)(2), 47:1432(D)
HB573 Act 343: 47:1402(D)(2), 47:1403(B)(6), 47:1407(3), 47:1418(4), 47:1431(B), 47:1432(A), 47:1436(B), 47:1437(A), 47:1439(C), 47:1856(D)(2), 47:1857(B)(1), 47:1989(C), 47:1998(A)(1), 47:2132(D), 47:2134(B)(3), 47:1431(D)(2), 47:1432(D)