Advantous Update – Louisiana Legislative Session
Only 21 days left until Louisiana’s 2025 Regular Legislative Session adjourns as of today, May 22nd, 2025. Here is an update on what happened this week at the legislature:
All 5 constitutional amendments related to the former CA 2 have made it to the Senate. Here are their current statuses:
- HB 366 by Representative Deshotel – authorizes parishes to exempt business inventory and to reduce percentage of fair market value applicable to business inventory – is pending Senate final passage scheduled for 5/27.
- HB 678 (formerly HB 472) by Representative Emerson – merges the Revenue Stabilization Fund and its dedications into the Budget Stabilization Fund – is pending Senate Finance.
- HB 294 by Representative Bagley – removes cap on severance tax to be remitted to parishes– is pending Senate Revenue and Fiscal Affairs.
- HB 473 by Representative Emerson – repeals certain trust funds to make payment to Teachers’ Retirement System – is pending Senate Finance.
- HB 295 by Representative Tarver – requires calculation and adoption of Government Growth Limit on recurring expenses – is pending Senate Finance.
HB 366 by Representative Deshotel was amended in Senate Committee on Revenue and Fiscal Affairs on Monday, May 19th, to remove designated assessment percentages for public service property owned by a railroad company and public service property limited to barge line and towing vessels. The constitutional amendment previously added categories for these public services properties at a rate of 15%. With the amendment adopted on Monday, these properties will be subject to the general fair market value percentage of 25% for public service properties. There was not any discussion as to the reason for this amendment, but we may know more once the bill is heard for debate. HB 366, as amended, is now pending Senate final passage, scheduled for 5/27/25.
HB 365 by Representative Deshotel, the statutory companion to HB 366, was also amended in Senate Revenue and Fiscal Affairs on Monday, May 19th. This amendment added a provision to the bill that if a parish elects to reduce the fair market value (“FMV) percentage of business inventory, then the election will be irrevocable and cannot be increased. The logic here, per Representative Deshotel’s testimony, is that they don’t want a parish to reduce the FMV percentage for an assessment period to attract businesses to the parish then subsequently raise the FMV percentage the following assessment period. The amendment was adopted, and the bill is now pending Senate final passage, scheduled for 5/27/25.
In other news, HB 271 by Representative Willard – constitutional amendment to authorize parishes to increase the homestead exemption up to $12,500 – failed House final passage on Monday, May 19th. The main concern with this bill was how parishes would make up the lost revenue if they increase the homestead exemption. The concern was that local governments would increase tax liability on businesses and other taxpayer that do not qualify for the exemption. To combat this, Representative Echols filed an amendment to HB 271 on the House floor which would prohibit local government from imposing additional tax liability on other taxpayers. The amendment was adopted but the bill still failed to pass the House with 42 yeas and 58 nays.
Also on Monday, the last bill standing to levy a tax on carbon capture and sequestration failed. HB 552 by Representative Schamerhorn, which would have levied an excise tax of five cents per mile, per ton of carbon dioxide transported, was reported unfavorably in House Ways and Means. HB 646 by Representative Carter, which would have imposed an excise tax of 30% on the proceeds from geological storage of carbon, was deferred voluntarily for the remainder of session in House Ways and Means on 5/13. HB 444 by Representative Mack, which would have imposed an injection tax of $3 per metric ton of carbon injected by a Class VI well, was also not reported favorably in House Ways and Means on 5/12.
Lastly, HB 500 by Representative Beaullieu was amendment on the House floor on Monday. The bill as originally filed: (1) created a mediation option to dispute a final assessment of sales and use tax; (2) expanded the authority of the Uniform Local Sales Tax Board regarding policy advice; and (3) added a fourth judge to the Board of Tax Appeals and specified its term limits. The bill was amended on the House floor to remove the requirement that the Governor appoint another judge to the Board of Tax Appeals. While explaining the amendment, Representative Riser stated that the addition of the mediation option alone will likely reduce the need for a fourth judge.