SB 485 — TAX/LOCAL: Provides for the levy of premium tax in the city of St. George. (7/1/26)

Notwithstanding any law to the contrary, in the event the city of St.

George Transition District levies and collects a two percent sales and use tax, the municipality levies and collects a two percent sales and use tax, the end of the quarterPage following1 theof election2 toCoding: impose the municipal tax if the proposition is not approved by the electorate, or twelve months after the incorporation becomes final, whichever occurs first.

the city of St.

George shall exclusively exercise all municipal authority to levy, collect, administer, and enforce any insurance premium tax, as defined in R.S.

33:3077, on risks located within the corporate limits of the city of St.

George.

(2)BeginningonJanuary1,2027,thecityofBatonRougeandtheparish ofEastBatonRouge,includinganycomponentoftheconsolidatedgovernment, shall not levy, collect, administer, or receive any insurance premium tax on risks located within the corporate limits of the city of St.

George.

(3) Nothing in this Section shall be construed to authorize duplicative taxation.

An insurer shall be subject to only one local insurance premium tax for a given period for risks located within the corporate limits of the city of St.

Page 3 of 12 Coding:

SLS 26RS-552 REENGROSSED SB NO.

485 George.ENROLLED quarter following the election to impose the municipal tax if the proposition is not approved by the electorate, or twelve months after the incorporation becomes final, whicheveroccursfirst.

(4)beginning Theon governingJanuary authority1.2027,thecityof of the city of St.

GeorgeGeorgeshall andexclusively governingexercise authorityofthecityofall Batonmunicipal Rougeandauthority parishto oflevy, Eastcollect, Batonadminister, Rougemayenterand intoenforce anany intergovernmentalinsurance agreementpremium solelytax, foras thedefined purposesin ofR.S. records transfer, closeout of prior records,and administrative cooperation, but not for thecontinuedcollectionof theinsurance premiumtaxdescribedin this Section by the city of Baton Rouge or parish of East Baton Rouge.

*33:3077, *on *risk §3080.1.located within the corporate limits of the city of St.

DevelopmentGeorge. related public facilities charge A.(1) Notwithstanding any provision of law to the contrary, a municipality meetingthecriteriaprovided in Subsection B of this Sectionmay, by ordinance, require new development to bear a proportionate share of the cost of public facilities necessary by the development, including through methodologies or schedules derived from a capital improvement plan or professionalstudyand applied asaconditionofsubdivision approval,building permit issuance, utility connection, certificate of occupancy, or other development approval.

(2) A charge imposed pursuant to this Section shall be limited to the allocation of costs attributable to new development and imposed only in accordance with this Section.

ThisThe Sectioncity shallof applyBaton onlyRouge toand athe municipalityparish thatof meetsEast allBaton Rouge, includinganycomponentoftheconsolidatedgovernment,shallnotlevy,collect, administer, or receive any insurance premium tax on risks located within the corporate limits of the followingcity criteria:of St.

(1)George. Incorporated on or after January 1, 2010.

(2) Governed by applicable state law and not operating under a home rule charter.

(3) Located wholly or partially within a parish having a population in excessofthreehundredthousandaccordingtothemostrecentfederaldecennial census.

ForNothing purposesin of this Section,Section theshall followingbe termsconstrued haveto theauthorize followingduplicative Pagetaxation. 4 of 12 Coding:

WordsAn whichinsurer areshall struckbe throughsubject areto deletionsonly fromone existinglocal law;insurance premium tax for a given risk and period.

wordsD. in boldface type and underscored are additions.

SLSThe 26RS-552governing REENGROSSEDauthority SBof NO.the city of St.

485George meanings:and governing authority of the parish of East Baton Rouge may enter into an intergovernmental agreement solely for the purposes of records transfer, closeout of prior records, and administrative cooperation, but not for the continued collection of the insurance premium tax described in this Section by the parish or consolidated government.

(1) "Development" means the construction, reconstruction, redevelopment,conversion,structuralalteration,relocation,orenlargementof any structure or use of land which increases the demand for public facilities.

"Development" shall not include ordinary maintenance, repair, or reconstruction of a structure destroyed by casualty, provided that the maintenance,repair,orreconstructionofastructuredoesnotincreasedemand for public facilities beyond the demand in existence immediately prior to the casualty.

(2) "Public facilities" means capital improvements for roads, bridges, intersections, traffic control systems, drainage, storm water and flood control systems, water supply and distribution systems, and wastewater collection, treatment, pumping, and disposal systems, including associated land, rights-of-way, design, engineering, and infrastructure directly related to capacity expansion.

(3) "Public facilities charge" means a monetary condition imposed pursuanttothisSectiontofundorrecoupthecostsofcapacityexpandingpublic facilities.

(4) "Qualified professional" means a professional engineer licensed in the state of Louisiana or another person with demonstrable expertise in infrastructureplanning, finance,orimpactanalysisrelevanttopublic facilities charges.

(5)"Servicearea"meansageographicareawithinwhichthebenefitsof apublicfacilityarereasonablyexpectedtobeavailabletoadevelopmentpaying the charge.

D.(1) Prior to adopting or amending any ordinance imposing a public facilities charge, the municipality shall adopt a capital improvement plan or professional study prepared or approved by a qualified professional.

(2) The plan or study pursuant to this Subsection shall:

Page 5 of 12 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 (a) Identify existing capacity and projected demand attributable to the development.

(b) Identify capital improvements required to accommodate the development.

(c) Establish service areas, if applicable.

(d) Establish a reasonable methodology for determining the proportionate share of costs attributable to the development.

(3) Prior to adopting or amending an ordinance imposing a public facilities charge, the municipality shall hold at least one public hearing.

Notice of the hearing shall be published in the official journal of the municipality at least fifteen days prior to the hearing, and the capital improvement plan or professional study shall be made available for public inspection before the hearing.

(4) A public facilities charge shall apply only to a development application that is submitted after the effective date of the ordinance.

E.(1)Apublicfacilitieschargeshallbearareasonablerelationshiptothe need for public facilities created by the development.

(2) A public facilities charge shall not exceedthe proportionate share of the costs of public facilities attributable to the development.

(3) A charge imposed pursuant to this Section shall not be used to fund operations or maintenance.

(4) A charge imposed pursuant to this Section shall not be used to remedy an existing deficiency except to the extent attributable to new development.

(5) A charge imposed pursuant to this Section shall be reduced as necessary to avoid duplicating recovery for the same public facility cost from the samedevelopment.The chargemaybereducedtoaccountfor fees imposed by other governmental entities for the same public facility capacity.

(6) A public facilities charge may include automatic intermittent Page 6 of 12 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 adjustments based on a recognized construction cost index.

F.

The ordinance shall provide for credits or offsets for the value of any land, construction, or improvements provided or funded by a developer that servethe same public facilities or service area for which the charge is imposed.

G.(1) Revenue collected pursuant to this Section shall be deposited in a separate interest bearing account by facility category and, if applicable, by service area.

(2)Revenueandinterestearnedshallbeusedonlyforthepublicfacilities and service area for which it is collected.

(3) Revenue shall be expended or encumbered within eight years of collection or within a shorter period established by ordinance.

The revenue, if not expended or encumbered within the applicable period, shall be subject to refund pursuant to procedures established by ordinance, including refund application procedures, methodology for any pro rata calculations, and deadlines for refund transfers.

H.Themunicipalityshallestablishproceduresforadministrativereview of a public facilities charge and has the right of judicial review in accordance with applicable law.

I.

Notwithstanding any provision of law tothecontrary,a municipality, upon meeting the requirements provided in this Section, may prepare or commission the capital improvement plan or professional study, hold the hearing, and adopt animplementingordinanceinaccordancewith this Section to become effective on January 1, 2027.

No public facilities charge shall be assessed prior to January 1, 2027.

J.

The authority granted by this Section shall terminate on January 1, 2029.

PagePRESIDENT 7OF ofTHE 12SENATE Coding:SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

WordsPage which2 areof struck2 throughCoding: are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 Section 4.

The provisions of this Act are severable.

If any provision or item of this Act, or the application thereof, is held invalid, such invalidity shall not affect the other provisions, items, or applications of this Act and the Act shall be given effect without the invalid provision, item, or application pursuant to R.S.

24:175.

The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared bySenate Legislative Services.

The keyword, summary, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] DIGEST SB 485 Reengrossed 2026 Regular Session Edmonds Present law provides for transition following the incorporation of the city of St.

George.

Proposed law retains present law.

Present law provides for legislative intent that finds and determines that in the event the lawsuit challenging the incorporation of the city of St.

George within East Baton Rouge Parish is unsuccessful, a state of emergency will exist in the municipality until cash flow can be developed through the levy and collection of municipal sales and use taxes to fund the expenses of municipal government.

Provides that the legislature determines it essential and necessaryto authorize the continuation of the parish tax within the area incorporated, to authorize the continuation of the provision of services bythe parish within the area incorporated, and to create a financial assistance district and provide for it a source of revenue in order that it mayengage in cooperative endeavors, enter into contracts for the provision of essential public services, and raise revenue to assist the municipality in funding the delivery of essential public services to its citizens and to assist the municipality in preventing cash flow difficulties.

Proposed law retains present law and provides that the legislature further finds and declares that:

(1) A municipality governed by the applicable laws of this state and located within a larger parish may experience immediate development related demands on roads, drainage, water, and wastewater facilities following incorporation.

(2) Local governments in this state currently administer development related charges associated with traffic, sewer, drainage, and utility capacity.

(3) Uniform standards and clarification are necessaryto ensure that the charges are administered fairly, predictably, and in reasonable proportion to the impacts of development.

(4) Development related public facilities charges are a component of municipal fiscal authority for providing public services and infrastructure.

Present law defines the following terms:

(1) "Board" means the board of directors of the district or anysuccessor thereto.

(2) "District" means the St.

George Transition District or any successor thereto.

(3) "Mayor-president" means the mayor-president of the city of Baton Rouge and Page 8 of 12 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 parish of East Baton Rouge.

(4) "Municipality" means the city of St.

George in East Baton Rouge Parish.

(5) "Municipal tax" means the two percent sales and use tax levied by the city of St.

George as provided in present law (R.S.

33:3079(D)(5)).

(6) "Parish" means East Baton Rouge Parish.

(7) "Parish tax" means the two percent sales and use tax levied in the unincorporated areas of the parish.

Proposed law retains present law and adds that "insurance premium tax" means a license tax imposed on insurers pursuant to present law or anyother applicable law, based upon premiums written on risks located within the taxing jurisdiction.

Present law provides that in the event the cityof St.

George, as approved by the voters on October 12, 2019, is incorporated, the parish maycontinue to levy and collect the parish tax within the corporate limits of the municipality pursuant to an intergovernmental agreement between the parish and municipalityfor the purpose of providing essential public services to, or funding essential public services for, the citizens within St.

George until the St.

George Transition District levies and collects a two percent sales and use tax, the municipality levies and collects a two percent sales and use tax, the end of the quarter following the election to impose the municipal tax if the proposition is not approved by the electorate, or 12 months after the incorporation becomes final, whichever occurs first.

Proposed law changes present law so that, beginning on January 1, 2027, the city of St.

George shall succeed to and exclusively exercise all municipal authority to levy, collect, administer, and enforce anyinsurance premium tax on risks located within the corporate limits of the city of St.

George.

Proposed law provides that beginning January 1, 2027, the city of Baton Rouge and the parish of East Baton Rouge, including any component of the consolidated government, shall not levy, collect, administer, or receive anyinsurance premium tax on risks located within the corporate limits of the city of St.

George.

Proposed law provides that nothing in proposed law shall be construed to authorize duplicative taxation.

Further provides that an insurer shall be subject to onlyone local insurance premium tax for a given period for risks located within the corporate limits of the city of St.

George.

Proposed law provides that the governing authorities of the city of St.

George and the city of Baton Rouge and the parish of East Baton Rouge may enter into an intergovernmental agreement solely for purposes of records transfer, closeout of prior records, and administrative cooperation, but not for the continued collection of the tax described in proposed law by the city of Baton Rouge or parish of East Baton Rouge.

Proposed law provides that notwithstanding any provision of law to the contrary, a municipality meeting the criteria provided in proposed law may, by ordinance, require new development to bear a proportionate share of the cost of public facilities necessary by the development, including through methodologies or schedules derived from a capital improvement plan or professional studyand applied as a condition of subdivision approval, building permit issuance, utility connection, certificate of occupancy, or other development approval.

Proposed law provides that a charge imposed pursuant to proposed law shall be limited to the allocation of costs attributable to new development and imposed onlyin accordance with proposed law.

Page 9 of 12 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 Proposed law provides that proposed law shall applyonly to a municipality that meets all of the following criteria:

(1) Incorporated on or after January 1, 2010.

(2) Governed by applicable state law and not operating under a home rule charter.

(3) Located wholly or partially within a parish having a population in excess of three hundred thousand according to the most recent federal decennial census.

Proposed law defines "development", "public facilities", "public facilities charge", "qualified professional", and "service area".

Proposed law provides that prior to adopting or amending any ordinance imposing a public facilities charge, the municipality shall adopt a capital improvement plan or professional study prepared or approved bya qualified professional.

Proposed law provides that the plan or study pursuant to proposed law shall:

(1) Identify existing capacity and projected demand attributable to the development.

(2) Identify capital improvements required to accommodate the development.

(3) Establish service areas, if applicable.

(4) Establish a reasonable methodology for determining the proportionate share of costs attributable to the development.

Proposed law provides that a public hearing be held prior to adopting or amending an ordinance imposing a public facilities charge and provides for public notice.

Proposed law provides that a public facilities charge shall apply only to a development application that is submitted after the effective date of the ordinance.

Proposed law provides that a public facilities charge shall:

(1) Bear a reasonable relationship to the need for public facilities created bythe development.

(2) Not exceed the proportionate share of the costs of public facilities attributable to the development.

(3) Not be used to fund operations or maintenance.

(4) Not be used to remedy an existing deficiency except to the extent attributable to new development.

(5) Be reduced as necessaryto avoid duplicating recovery for the same public facility cost from the same development.

Proposed law provides a public facilities charge may include automatic intermittent adjustments based on a recognized construction cost index.

Proposed law provides that the ordinance shall provide for credits or offsets for the value of any land, construction, or improvements provided or funded bya developer that serve the same public facilities or service area for which the charge is imposed.

Proposed law provides that revenue collected pursuant to proposed law shall be deposited Page 10 of 12 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 in a separate interest bearing account by facility category and, if applicable, by service area.

Proposed law provides that revenue and interest earned shall be used onlyfor the public facilities and service area for which it is collected.

Proposed law provides that revenue shall be expended or encumbered within eight years of collection or within a shorter period established byordinance.

Provides that the revenue, if not expended or encumbered within the applicable period, shall be subject to refund pursuant to procedures established byordinance, including refund application procedures, methodology for any pro rata calculations, and deadlines for refund transfers.

Proposed law provides that the municipality shall establish procedures for administrative review of a public facilities charge and has the right of judicial review in accordance with applicable law.

Proposed law provides that notwithstanding any provision of law to the contrary, a municipality, upon meeting the requirements provided in proposed law, mayprepare or commission the capital improvement plan or professional study, hold the hearing, and adopt an implementing ordinance in accordance with proposed law to become effective on January 1, 2027.

Further provides that no public facilities charge shall be assessed prior to January 1, 2027.

Proposed law terminates on January 1, 2029.

Proposed law has prospective application relative to premiums attributable to periods beginning on and after January 1, 2027.

Effective January 1, 2027.

(Amends R.S.

33:3076 and 3078;

adds R.S.

33:3077(8) and 3080.1) Summary of Amendments Adopted by Senate Senate Floor Amendments to engrossed bill 1.

Adds to the legislative intent.

2.

Clarifies the definition for "insurance premium tax".

3.

Provides for January 1, 2027, as the succession date for control bythe city of St.

George of insurance premium taxes.

4.

Provides for an intergovernmental agreement between the cityof St.

George and the city of Baton Rouge and the parish of East Baton Rouge solely for the purposes of transferring control of the collection of insurance premium taxes.

5.

Provides relative to public facility charges and provides for definitions.

6.

Provides relative to a capital improvement plan or professional study prepared by a qualified professional.

7.

Provides for deposit of revenue collected pursuant to proposed law.

8.

Mandates the establishment of procedures bythe city of St.

George for administrative review of public facility charges.

Page 11 of 12 Coding:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-552 REENGROSSED SB NO.

485 9.

Terminates provisions relative to public facilities charge on January 1, 2029.

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