BATON ROUGE, La. (KTVE/KARD) — Proposed Louisiana Amendment 5 deals with ad valorem taxation.
Proposed amendment 5:
Act 370 (SB 272, 2020 Regular Session by Senator Abraham) – Proposed constitutional amendment
changes present constitution by establishing an exemption for property subject to a cooperative
endeavor agreement that requires the property owner to make payments in lieu of the ad valorem taxes imposed by a taxing authority that is a party to the agreement.
The extent of the exemption shall be as provided for in the agreement. Proposed constitutional amendment requires that an enactment of any law to implement payments in lieu of taxes shall require a two-thirds vote of each house of the legislature.
Proposed constitutional amendment requires that exempt properties be listed on the assessment rolls and that information concerning those properties be submitted to the La. Tax Commission. (Adds Const. Article VII, §21(O))
This is what you will see on the ballot:
“Do you support an amendment to authorize local governments to enter into
cooperative endeavor ad valorem tax exemption agreements with new or expanding manufacturing
establishments for payments in lieu of taxes?” (Adds Article VII, Section 21(O))
Louisiana Amendment 5, the Payments in Lieu of Property Taxes Option Amendment, is on the ballot in Louisiana as a legislatively referred constitutional amendment on November 3, 2020.
So, what will a vote on this amendment mean?
A “yes” vote supports amending the state constitution to authorize local governments to enter into a cooperative endeavor agreement with new or expanding manufacturing establishments and allowing the manufacturing establishments to make payments to the taxing authority instead of paying property taxes.
A “no” vote opposes authorizing local governments to enter into a cooperative endeavor agreement with new or expanding manufacturing establishments and allowing the manufacturing establishments to make payments to the taxing authority instead of paying property taxes.
What is ad velorem taxation?
Cornell Law says, “Ad valorem is a Latin phrase that translates to ‘according to the value.’ The essential characteristic of ad valorem tax is that it is proportional to the value of the underlying asset, unlike specific tax, where the tax amount remains constant, irrespective of the underlying asset’s value. Ad valorem tax is commonly used in the taxation of real property.”
What would Amendment 5 do?
This amendment would allow certain property owners who enter into a cooperative agreement, or payment plan, with the taxing authority to make payments instead of paying a yearly lump sum for property taxes, according to details established by law and the specific agreements. The exemption could only be applied to new manufacturing establishments or additions to existing manufacturing establishments.
Other items on the ballot:
- Amendment 1: No Right to Abortion in Constitution Amendment
- Amendment 2: Include Oil and Gas Value in Tax Assessment of Wells Amendment
- Amendment 3: Use of Budget Stabilization Fund for Declared Disasters Amendment
- Amendment 4: Expenditures Limit Growth Formula Amendment
- Amendment 5: Payments in Lieu of Property Taxes Option Amendment
- Amendment 6: Homestead Exemption Special Assessment Income Limit Amendment
- Amendment 7: Unclaimed Property Permanent Trust Fund Amendment
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