HB 217 — TAX/AD VALOREM-EXEMPTION: Authorizes an optional property tax exemption for blighted or derelict properties that have been rehabilitated and provides with respect to local redevelopment plans (EN SEE FISC NOTE LF RV See Note)

Requires that the exemption, if implemented by a parish, apply to all millages imposed within the parish.

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HLS 26RS-390 REENGROSSED HB NO.

217 Proposed law defines "blighted property" and "derelict property" for purposes of the property tax exemption.

Proposed law allows parish governing authorities, by resolution, to elect to implement the exemption.

Requires a parish governing authority electing to implement the exemption to establish all of the following:

(1) A process by which a property owner may apply for the exemption.

(2) Rehabilitation standards that a property must meet in order to qualify for the exemption.

(3) Criteria for approving an application for the exemption.

(4) Conditions for revocation of a previously approved exemption.

(5) Any other policies or procedures necessaryfor administration of the exemption.

Proposed law establishes that for qualifying residential property, not more than 75% of the assessed value of the propertymay be exempted from ad valorem taxation for a period not to exceed 20 years.

Proposed law establishes that for qualifying unimproved land, not more than 25% of the assessed value of the propertymay be exempted from ad valorem taxation for a period not to exceed 10 years.

Stipulates that exemptions for unimproved land shall be subject to certainconditionsandrestrictionsprovidedinproposedlaw.

Prohibitsgrantingexemptions for more than two tracts or lots of unimproved land to anyproperty owner.

Proposed law limits eligibility for the exemption to property owners who hold title to the property identified in the application for the exemption.

Proposed law authorizes parishes and municipalities to opt out of certain property tax limitationsforpropertieslocatedwithinadesignatedredevelopmentarea,blightelimination zone, or similar district and that are subject to an adopted redevelopment plan that meets requirements provided in proposed law.

Proposed law authorizes governing authorities to designate entities to support the creation, implementation, or administration of redevelopment plans;

to assist in accessing or deployingfinancingmechanismsauthorizedunderthoseplans;andtofacilitateorundertake redevelopment activities necessaryto carry out the plans.

Proposed law requires that the duration, scope, and application of a particular election be determined by the governing authority in accordance with the adopted redevelopment plan and applicable law.

Proposed law requires that any governing authority or other entity responsible for administration or investment of property tax revenues pursuant to a redevelopment plan adopted in accordance with proposed law that includes the use of such revenues to support redevelopment of blighted, or formerly blighted, properties be subject to certain forms of financial oversight as provided in proposed law.

Proposed law authorizes the La.

Tax Commission to promulgate administrative rules as necessary to implement proposed law.

Proposed law applies to tax years beginning on or after Jan.

1, 2027.

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HLS 26RS-390 REENGROSSED HB NO.

217 Effective Jan.

1, 2027, if the proposed amendment of Article VII of the Constitution of La.

contained in the Act which originated as House Bill No.

214 of this 2026 R.S.

is adopted at a statewide election and becomes effective.

(Adds R.S.

47:1703.2) Summary of Amendments Adopted by House TheCommitteeAmendmentsProposedbyHouseCommitteeonWaysandMeanstothe original bill:

1.

Make a technical change.

The House Floor Amendments to the engrossed bill:

1.

Authorize parishes and municipalities to opt out of certain property tax limitations forpropertieslocatedwithin adesignatedredevelopmentarea,blight elimination zone, or similar district and that are subject to an adopted redevelopment plan that meets certain requirements.

2.

Authorize governing authorities to designate entities to support the creation, implementation,oradministrationofredevelopmentplans;toassistindeploying financing mechanisms authorized under those plans;

and to facilitate redevelopment activities necessaryto carry out the plans.

3.

Require that the duration, scope, and application of a particular election be determined by the governing authority in accordance with the adopted redevelopment plan and applicable law.

4.

Require that any governing authority or other entity responsible for administration or investment of property tax revenues pursuant to a redevelopment plan that includes the use of such revenues to support redevelopment of blighted, or formerlyblighted, properties be subject to certain forms of financial oversight.

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