CA NO. 5 – Authorizes Cooperative Endeavor Tax Exemptions
This amendment would allow local governments to exempt new or expanding manufacturing businesses from paying property taxes as long as the business agrees to make scheduled payments of a mutually agreed amount of money. Much like the Industrial Tax Exemption Program (ITEP), this amendment seeks to incentivize business development in Louisiana, but leaves open many questions about how payments will be enforced if businesses do not hold up their side of the agreement.
Local governments can agree with new or expanding businesses to forgo property taxes in exchange for a payment in lieu of taxes program (PILOT). The business would make scheduled payments of a mutually agreed amount in exchange for not paying property taxes.
No language is added to the constitution. Local governments cannot enter into cooperative endeavor ad valorem tax exemptions with businesses in lieu of taxes.