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Louisiana - More Companies May Become Tax Exempt

by Tony Klein, Houston, July 2012

Louisiana voters will decide in November whether to make certain non-manufacturing businesses exempt from local property taxes. Supporters say the tax exemptions are needed to help attract new business to the state.

 

Act No. 499 provides local option property tax exemptions for the following:

 

  • Corporate headquarters

  • Distribution facilities

  • Data services plants

  • Research and development operations

  • Digital media and software development centers

 

If Act 499 passes, businesses listed above could get a tax exemption for ten years. Louisiana currently offers owners of manufacturing property a 5-year property tax exemption with a one-time extension.

 

To be eligible, companies must make a minimum $25 million investment, create at least 50 new jobs and have at least 50% of their total annual sales to out-of-state customers. The exemption must be approved by the parish governing authority, the municipality, the school board, the law enforcement district and the assessor. It does not apply to the first $10 million of fair market value or the first 10% of the fair market value, whichever is greater.