Protect Louisiana taxpayers from an expensive new tax.

 
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Constitutional Amendment #1: 

"Do you support an amendment to exempt from property taxes materials and other property delivered to a construction site to be made part of a building or other construction?"

YES!

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news

Amendment #1 has been endorsed by these major news outlets in Louisiana:

The Advocate: Our Views: We vote 'no' on 2 of 3 constitutional amendments on Louisiana ballots

The Times-Picayune | Nola.com: Our recommendations on constitutional amendments | Editorial

Gambit Weekly: Our Endorsements in Fall 2017 Elections

Baton Rouge Business Report: ‘Business Report’ Publisher: FYI: There is an election Oct. 14

 

What is Constitutional Amendment #1?

 

It has been a traditional practice in Louisiana going back decades, if not even longer, that any type of new construction was not placed on the property tax rolls until the building or project was completed.

The property or land itself would be on the rolls and taxes would be paid on that. But the materials used to build the project were not taxed while construction was underway and the final improvements didn’t go onto the tax rolls until the project was completed. 

That has been the case for any type of construction, whether it was a commercial or industrial project, or if someone was building a home or adding on. 

During the 2017 Legislative Session Senator Mike Walsworth handled SB 140 to bring a constitutional amendment to allow the voters of Louisiana to make this protection permanent.  

This amendment is meant to address the silence in the constitution about whether property taxes can be levied on construction materials before the construction is completed.

If this amendment passes, it will clarify that construction materials would be exempt from taxation until “construction is finished to the extent that the project can be used or occupied for its intended purpose.” It goes on to say that for projects constructed in multiple phases, any portion that is complete and available for its intended use is subject to assessment. 

No one seems to know of anytime where the materials used to construct a project, building, or residence were assessed a property tax before the work was completed. Nevertheless, the constitution seems to be silent on this.

One thing that’s very clear is that this is not a small issue, and could cause added taxation to new homes and new businesses that would also lead to larger mortgages.

 

Local governments and business leaders support Constitutional Amendment #1 because they know it will: 

  • Protect our citizens, some of whom are having to deal with increases in flood insurance, from facing a large property tax increase
     

  • Eliminate uncertainty for anyone seeking to construct anything anywhere in the state
     

  • Keep Louisiana competitive for attracting new companies and thousands of jobs to the state

Supporters include:

Louisiana Police Jury Association 

Louisiana Home Builders Association

Louisiana Association of General Contractors

Louisiana Realtors Association

Louisiana Municipal Association

Louisiana Energy Export Association

Louisiana Chemical Association

Mid Continent Oil and Gas

Louisiana Industrial Development Executives Association

Associated Builders and Contractors of Louisiana

Louisiana Association of Business and Industry

Committee of 100

Westbank Business and Industry Association (WBIA)

Pulp and Paper Association

Orleans Republican Party

Alliance for Positive Growth

St. Tammany West Chamber of Commerce

Southwest Louisiana Chamber-Economic Development Alliance

Louisiana Oil and Gas Association 

New Orleans Chamber of Commerce

Offshore Marine Services Association

National Federation Of Independent Businesses - Louisiana Chapter

Jefferson Parish Chamber

Greater New Orleans, Inc. (GNO Inc.)

Louisiana Regional Leadership Council

Council for a Better Louisiana (CABL)

World Trade Center of New Orleans (WTCNO)

River Region Chamber of Commerce

Bayou Industrial Group

South Central Industrial Alliance

Consumer Energy Alliance

Houma Terrebonne Chamber of Commerce

Louisiana Association of General Contractors

Louisiana Asphalt Association

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