Louisiana Amendment 5, Payments in Lieu of Property Taxes Option Amendment (2020)

Louisiana Amendment 5
Election date November 3, 2020
Topic Taxes and Property
Status d Defeated
Type Constitutional amendment	Origin State legislature
List of Louisiana measuresLouisiana Amendment 1Louisiana Amendment 2Louisiana Amendment 3Louisiana Amendment 4Louisiana Amendment 5Louisiana Amendment 6Louisiana Amendment 7Louisiana Allow for Out-of-State Members to the University Board of Supervisors AmendmentSubmit

Louisiana Amendment 5, the Payments in Lieu of Property Taxes Option Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 3, 2020. It was defeated.

A "yes" vote supported amending the state constitution to authorize local governments to enter into a cooperative endeavor agreement with new or expanding manufacturing establishments and allowing the manufacturing establishments to make payments to the taxing authority instead of paying property taxes.

A "no" vote opposed authorizing local governments to enter into a cooperative endeavor agreement with new or expanding manufacturing establishments and allowing the manufacturing establishments to make payments to the taxing authority instead of paying property taxes.

Election results

Louisiana Amendment 5
Result		Votes	Percentage
Yes		727,372	37.33%
No		1,221,254	62.67%

Results are officially certified.

Source

Overview

What would Amendment 5 changed?

See also: Ballot language and constitutional changes

Amendment 5 would have authorized an exemption from ad valorem property taxes for certain property when the owner of the property enters into a cooperative endeavor agreement with a taxing authority to make payments to the taxing authority instead of paying property taxes, according to details established by law and the specific agreements. The exemption could only be applied to new manufacturing establishments or additions to existing manufacturing establishments. Under the amendment, any law implementing this amendment would need to be approved by a two-thirds (66.67%) vote in each chamber of the state legislature and information about the properties to which this exemption is applied would need to be added to tax assessment rolls and provided to the Louisiana Tax Commission.

How did Amendment 5 get on the ballot?

See also: Path to the ballot and Previous attempts to put the amendment on the ballot

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a constitutional amendment to the ballot for voter consideration. The Louisiana State Legislature attempted to place similar constitutional amendments on the statewide ballot in previous years including 2019 and 2017.

Sen. Mark Abraham (R) introduced the constitutional amendment as Senate Bill 272 on March 9, 2020. On May 20, 2020, the Louisiana State Senate approved the constitutional amendment in a vote of 32-4. The House approved the measure with amendments, which were then rejected by the Senate. A conference committee was convened to reach compromise on the bill and a conference committee report was agreed to by both houses of the legislature on June 1, 2020. The final votes in the Senate were 34-3 and 75-16 in the House.

Text of measure

Ballot title

The ballot title was as follows:

“

Do you support an amendment to authorize local governments to enter into cooperative endeavor ad valorem tax exemption agreements with new or expanding manufacturing establishments for payments in lieu of taxes? (Adds Article VII, Section 21(O))

”

Ballot summary

The ballot summary was as follows:

“

Proposed Constitutional Amendment adds an exemption from ad valorem taxation for property that is subject to a cooperative endeavor agreement between the owner and one or more taxing authorities which requires the property owner to make payments in lieu of taxes. Further provides that property eligible for the exemption shall be limited to a new manufacturing establishment or an addition to an existing manufacturing establishment. Proposed Constitutional Amendment provides the exemption shall be to the extent agreed to and provided for in the cooperative endeavor agreement and requires the property exempted to be listed on the assessment rolls and submitted to the Louisiana Tax Commission. Proposed Constitutional Amendment provides that enactment of any law to implement the provisions relating to the exemption and any amendment to that law shall require a 2/3 vote of the elected members of each house of the legislature.

”

Constitutional changes

See also: Article VII, Louisiana Constitution

The measure would have added a Section 21(O) to Article VII of the Louisiana Constitution. The following underlined would have been added:

§21. Other Property Exemptions

Section 21. In addition to the homestead exemption provided for in Section 20 of this Article, the following property and no other shall be exempt from ad valorem taxation:

(O) Property that is subject to a cooperative endeavor agreement, as provided by law and this Constitution, between the owner and one or more taxing authorities which agreement requires the property owner to make payments in lieu of taxes as provided by law. Property eligible for this exemption shall be limited to property of a new manufacturing establishment or an addition to an existing manufacturing establishment.

(1) The exemption authorized under this Paragraph shall be to the extent agreed to and provided for in the cooperative endeavor agreement. All property exempted shall be listed on the assessment rolls and submitted to the Louisiana Tax Commission.

(2) Enactment of any law to implement this Paragraph and any amendment to that law shall require a two-thirds vote of the elected members of each house of the legislature.

Fiscal impact

The following fiscal impact statement was written by Greg Albrecht, chief economist for the Louisiana Legislative Fiscal Office:

“

Expenditure Explanation There is no anticipated direct material effect on governmental expenditures as a result of this measure. Revenue Explanation This constitutional amendment provides local governments the ability to grant ad valorem tax exemptions to manufacturing establishments by agreement providing payments in lieu of taxes. Although there may be numerous reasons for both local governments and taxpayers to enter cooperative endeavor agreements to achieve community goals, the utilization of this authority may result in lower local ad valorem tax revenue collections, in that taxpayer payments in lieu of ad valorem tax may be lower than the ad valorem tax itself. Otherwise, taxpayers may not be inclined to enter the cooperative endeavor agreements. However the payments in lieu of ad valorem tax may provide resources for particular local projects that might not be available from other sources. Utilization of such agreements is speculative, and the ultimate local government aggregate revenue impacts can not be projected. In addition, it is not clear how, if at all, these agreements would effect the millage adjustment process and the shifting of tax burdens among taxpayers. Given the bill’s ballot date, it seems likely that the earliest fiscal year that could be affected would be FY22 for agreements affecting ad valorem taxes due in late 2021.

”

Readability score

See also: Ballot measure readability scores, 2020

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Louisiana State Legislature wrote the ballot language for this measure. The FKGL for the ballot title is grade level 15, and the FRE is 17. The word count for the ballot title is 36, and the estimated reading time is 9 seconds. The FKGL for the ballot summary is grade level 12, and the FRE is 31. The word count for the ballot summary is 142, and the estimated reading time is 37 seconds.

Support

Supporters

Officials

• State Senator Mark Abraham (R)

Unions

• Louisiana School Board Association
• Louisiana Sheriff’s Association
• Police Jury Association

Arguments

• Public Affairs Research Council of Louisiana: The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR wrote the following argument in support of Amendment 5: "The Louisiana School Board Association, the Police Jury Association, the Louisiana Sheriff’s Association and multiple business organizations support this amendment. It gives local governments an additional, optional tool for incentivizing business investment and empowers local governments to negotiate a more “front-loaded” funding schedule for local needs without having to wait out the eight- or 10-year ITEP period. The payments can be used by local governments for a variety of purposes, including operations or to service bonds for public infrastructure projects. These arrangements would be completely voluntary for all sides. Unlike the rigid ITEP program controlled by the governor, this PILOT program is locally run and has the flexibility to be tweaked and improved by the Legislature over time. PILOTs are used successfully in other states and promote economic development while giving locals more control and providing more certainty to both sides."

Opposition

Louisiana Taxpayer Education Fund led the campaign in opposition to Amendment 5.

Opponents

Unions

• Louisiana Assessors’ Association
• Louisiana Federation of Teachers

Organizations

• Louisiana Taxpayer Education Fund
• Together Louisiana

Arguments

• Edgar Cage of Together Louisiana: "This gives another avenue for a manufacturer to get around paying ad valorem property tax. Instead of the tax rate being set by an election, it’ll be based on how well a company can negotiate. And the rest of us will have to pay more to compensate for the deal cut by a single company."
• Public Affairs Research Council of Louisiana: The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR wrote the following argument in opposition to Amendment 5: "Assessors generally oppose this amendment. These PILOTS have the potential to be more generous than the ITEP tax break. Although the manufacturer might begin paying earlier than under ITEP, the company could get a better tax break by paying less taxes than would be due after the eight- or 10-year ITEP period expires. If a business pays taxes in advance, it will want to be compensated for doing so. That means the local government will receive less tax revenue, which could lead to spending cuts or an increase in taxes. Locking in an agreement for 25 years is too long. Politicians will make deals to enjoy revenue streams in the short term that hamper tax revenues in the long term. If payments are delinquent, the local government will not be able to wield the usual property tax enforcement system. The program creates more potential for corruption on the part of business interests and local officials. A law was passed in 2018 that lets businesses enter agreements to make advance property tax payments. We should give that program time to work before passing this amendment."
• Helen Lewis, contributing writer to Big Easy Magazine: "It will affect the whole state by allowing all big industries, oil, gas, and everyone else who haunts environmentalists’ nightmare to be exempt from paying property taxes. ... Once this amendment is voted into the constitution it will be extremely hard to undo, requiring a two-thirds vote from the house legislature. ... Louisiana is so rich in natural resources, and yet the state consistently ranks low in so many quality-of-life indicators. It all ties back to us letting big industries take advantage of us. We give more than 9 times what the average state gives corporations through a completely unelected board and it needs to come to an end. Vote to support Louisianans with billions of dollars that are rightfully ours. Vote against Amendment 5."
• Clancy Dubos, political editor and columnist for Gambit: "Amendment 5 would allow major industries to negotiate ten-year property tax rates with local governments by paying for ‘alternative projects’ in lieu of taxes. Supporters say it will promote jobs and projects, but there’s no such thing as a win-win when it comes to paying taxes. When someone gets a break, others have to pay more, and that is the problem. Louisiana already has America’s most generous tax breaks for big industry in ITEP… in most cases, they pay no property taxes. Amendment 5 would go on top of ITEP and shift the burden to small businesses, commercial property owners, homeowners and renters. They get no breaks whatsoever."

Background

Cooperative endeavor agreement

A cooperative endeavor agreement is an agreement that meets the following conditions, according to a memo by the Louisiana Legislative Auditor:

“

1. The expenditure or transfer must be for a public purpose that comports with the governmental purpose which the entity has legal authority to pursue; 2. The expenditure or transfer of public funds or property, taken as a whole, does not appear to be gratuitous; and 3. Evidence must demonstrate that the public entity has a demonstrable, objective, and reasonable expectation of receiving a benefit or value at least equivalent to the amount expended or transferred.

”

Previous attempts to put the amendment on the ballot

The Louisiana State Legislature attempted to place similar constitutional amendments on the statewide ballot in previous years including 2019 and 2017. In both legislative sessions, the amendment passed the Louisiana House of Representatives but did not make it out of committee in the state Senate.

Amendments on the ballot in Louisiana

See also: List of Louisiana ballot measures

The following statistics are based on legislatively referred constitutional amendments between 1995 and 2019 in Louisiana:

• Ballots featured 189 constitutional amendments.
  • Even-year ballots featured 121 constitutional amendments.
• An average of 10 measures appeared on even-year statewide ballots.
• The number of ballot measures on even-year statewide ballots ranged from four to 21.
• Voters approved 75 percent (141 of 189) and rejected 25 percent (48 of 189) of the constitutional amendments.

Legislatively-referred constitutional amendments, 1995-2018
Total number	Approved	Percent approved	Defeated	Percent defeated	Even-year average	Even-year median	Even-year minimum	Even-year maximum
189	141	74.6%	48	25.4%	10.1	8.0	4	21

Tax policies on the ballot in 2020

See also: Taxes on the ballot

In 2020, voters in 14 states voted on 21 ballot measures addressing tax-related policies. Ten of the measures addressed taxes on properties, three were related to income tax rates, two addressed tobacco taxes, one addressed business-related taxes, one addressed sales tax rates, one addressed fees and surcharges, and one was related to tax-increment financing (TIF).

Click Show to read details about the tax-related measures on statewide ballots in 2020.

Tax-related policy ballot measures in 2020

Income Tax a/ot Arizona Proposition 208: The campaign Invest in Education proposed the ballot initiative to enact a 3.50% income tax, in addition to the existing income tax (4.50% in 2020), on income above $250,000 (single filing) or $500,000 (joint filing). Proposition 208 was designed to distribute the revenue from the 3.50% income tax to teacher and classroom support staff salaries, retention programs, and career and technical education programs. a Colorado Proposition 116: In 1987, the state's income tax was changed from graduated rates to a flat rate. Going into 2020, that flat rate was 4.63%. The ballot initiative reduced the rate from 4.63% to 4.55%. d Illinois Allow for Graduated Income Tax Amendment: The Illinois State Legislature proposed this constitutional amendment to allow the state to enact legislation for a graduated income tax. Going into 2020, the state constitution required that the state personal income tax be a flat rate. Gov. J.B. Pritzker (D), who advocated for a graduated income tax during his gubernatorial campaign, was providing funds to the campaign backing the amendment. Business-Related Taxes d Alaska Ballot Measure 1: The campaign Vote Yes for Alaska's Fair Share proposed the ballot initiative to increase taxes on oil production fields located in Alaska's North Slope that exceeded certain output minimums. According to Robin Brena, chairperson of Vote Yes for Alaska's Fair Share, three oil production fields—Alpine, Kuparuk, and Prudhoe Bay—met those criteria. BP, Conoco Phillips, ExxonMobil, and Hilcorp Energy funded the campaign to defeat Measure 1. a Nebraska Initiative 431: The initiative was designed to impose an annual tax of 20% on gross gambling revenue of licensed gaming operators; distributing 2.5% of tax revenue to the Compulsive Gamblers Assistance Fund, 2.5% to the General Fund, 70% to the Property Tax Credit Cash Fund, and 25% to the counties where gambling is authorized at licensed racetracks. The initiative was one of three initiatives that together were designed to authorize, regulate, and tax gambling at racetracks in Nebraska. Property-Related Taxes d California Proposition 15: The ballot initiative would have amended Proposition 13 (1978), which required that residential, commercial, and industrial properties are taxed based on their purchase price, with an annual adjustment based on inflation or 2%, whichever was lower. Proposition 15 would have required commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. In California, the proposal to assess taxes on commercial and industrial properties at market value, while continuing to assess taxes on residential properties based on the purchase price, is known as split roll. The state fiscal analyst estimated that Proposition 15 would generate between $6.5 billion and $11.5 billion. Proposition 15 would have required that the revenue be allocated to local governments and schools. a California Proposition 19: The state Legislature proposed the constitutional amendment as a compromise with the California Association of Realtors, which had qualified a different ballot initiative. Proposition 19 was designed to allow tax assessments to be transferred from someone's old home to their new home anywhere in the state and increased the number of times that tax assessments can be transferred from one to three for persons over 55 years old or with severe disabilities. Proposition 19 was also designed to require that inherited homes that are not used as principal residences, such as second homes or rentals, be reassessed at market value when transferred. a Colorado Amendment B: The constitutional amendment repealed the Gallagher Amendment (1982), which required a 45%-55% ratio between residential assessment rates and non-residential assessment rates regarding tax revenue. Therefore, Amendment B permitted the Colorado Legislature to define tax assessment limits without reference to the 45%-55% ratio requirement. In Florida, Georgia, Louisiana, New Jersey, and Virginia, voters also decided eight ballot measures related to exemptions, adjustments, and payments: Florida Amendment 5, Florida Amendment 6, Referendum A, Louisiana Amendment 2, Louisiana Amendment 5, Louisiana Amendment 6, New Jersey Question 2, and Virginia Question 2. Sales Tax a Arkansas Issue 1: The ballot measure continued an existing a 0.5% sales tax, with revenue dedicated to roads, highways, and bridges. Going into 2020, the tax was set to expire in 2023. Issue 1 had the support of Gov. Asa Hutchinson (R), and the campaign behind Issue 1 received financial support from Alice and Jim Walton. Tobacco a Colorado Proposition EE: The ballot measure increased the tax rate on cigarettes from 84 cents per pack to $2.64 per pack and the tax rate on tobacco products from 40% of the manufacturer's list price to 62% of the manufacturer's list price. The ballot measure created a tax on nicotine products, such as e-cigarettes, with scheduled increases over seven years to 62% of the manufacturer's list price. Revenue from the tax increases was dedicated to preschool, education, housing, and the General Fund. a Oregon Measure 108: The ballot measure increased the cigarette tax from $1.33 to $3.33 per pack. The ballot measure also taxed e-cigarettes and other nicotine inhalants at a rate of 65% of the wholesale sales price and cigars at 65% of the wholesale sales price (but not to exceed $1.00 per cigar). Measure 108 dedicated revenue from the tax increases to the Oregon Health Authority. Fees a Colorado Proposition 117: In 1992, the Colorado Taxpayer's Bill of Rights (TABOR) Amendment defined government-owned firms that provide goods or services for a fee as enterprises. Examples of enterprises include state nursing homes, state lotteries, Colorado Correctional Industries, and College Assist. The ballot measure was designed to require voter approval of laws that create new enterprises should the enterprise's projected or actual revenue from fees and surcharges exceed $100 million within the first five years. TIF a Nebraska Amendment 2: The constitutional amendment increased the repayment period for tax increment financing from 15 to 20 years for areas where more than one-half of properties are designated as extremely blighted.

Campaign finance

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through December 3, 2020.

See also: Campaign finance requirements for Louisiana ballot measures

There was one ballot measure committee registered in opposition to Amendment 5: Louisiana Taxpayer Education Fund. The committee reported over $922,803 in contributions.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$0.00	$0.00	$0.00	$0.00	$0.00
Oppose	$850,000.00	$72,803.35	$922,803.35	$841,555.81	$914,359.16
Total	$850,000.00	$72,803.35	$922,803.35	$841,555.81	$914,359.16

Support

If you are aware of a committee registered to support Amendment 5, please email editor@ballotpedia.org.

Opposition

The following were contribution and expenditure totals for the committee in support of the initiative.

Committees in opposition to Amendment 5
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Louisiana Taxpayer Education Fund	$850,000.00	$72,803.35	$922,803.35	$841,555.81	$914,359.16
Total	$850,000.00	$72,803.35	$922,803.35	$841,555.81	$914,359.16

Top donors

The following is a list of the top donors that contributed to Louisiana Taxpayer Education Fund:

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
National Education Association	$550,000.00	$70,000.00	$620,000.00
Strategic Victory Fund	$200,000.00	$0.00	$200,000.00
Green Advocacy Project	$100,000.00	$0.00	$100,000.00
Louisiana Association of Educators	$0.00	$2,803.35	$2,803.35

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Path to the ballot

See also: Amending the Louisiana Constitution

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a constitutional amendment to the ballot for voter consideration.

Sen. Mark Abraham (R) introduced Amendment 5 as Senate Bill 272 on March 9, 2020. On May 20, 2020, the Louisiana State Senate approved the constitutional amendment, with 32 senators supporting the amendment, four senators opposing the amendment, and three senators absent or not voting. The House approved the measure with amendments, which were then rejected by the Senate. A conference committee was convened to reach compromise on the bill and a conference committee report was agreed to by both houses of the legislature on June 1, 2020. The final votes in the Senate were 34-3 and 75-16 in the House.

Vote in the Louisiana State Senate June 1, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 26  a
	Yes	No	Not voting
Total	34	3	2
Total percent	87.18%	7.69%	5.13%
Democrat	10	1	1
Republican	24	2	1

Vote in the Louisiana House of Representatives June 1, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 70  a
	Yes	No	Not voting
Total	75	16	13
Total percent	72.11%	15.38%	12.5%
Democrat	18	10	7
Republican	56	5	6
Independent	1	1	0

How to cast a vote

See also: Voting in Louisiana

Click "Show" to learn more about voter registration, identification requirements, and poll times in Louisiana.

How to cast a vote in Louisiana

The information below covers regular voting policies in the state. Information may have not applied to the election on November 3, 2020, because of temporary changes in response to coronavirus. Click here to read about changes made for the 2020 elections. Poll times In Louisiana, polls are open from 6:00 a.m. to 8:00 p.m. Central time for Tuesday elections. For Saturday elections, polls open at 7:00 a.m. If the polls close while a voter is in line, he or she will still be permitted to vote. Registration Check your voter registration status here. To vote in Louisiana, one must provide documentary proof of United States citizenship and be a resident of the state and parish in which they register. A voter must be at least 18 years old by Election Day. Registration completed via mail or in person must occur at least 30 days before Election Day. Registration completed online must occur at least 20 days before Election Day. Registrants must present a valid form of identification to register. Pre-registration is available beginning at age 16. Voters may register in person at any Registrar of Voters office or any of the following places: Louisiana Office of Motor Vehicles Louisiana Department of Social Services WIC offices Food stamp offices Medicaid offices Offices and agencies serving people with disabilities Military recruitment offices Automatic registration Louisiana does not practice automatic voter registration. Online registration See also: Online voter registration Louisiana has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration Louisiana does not allow same-day voter registration. Residency requirements Louisiana law requires 20 days of residency in the state before a person may vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Louisiana state law requires a voter registration applicant to provide proof of citizenship to register to vote. As of June 2025, the state had not implemented the requirement. All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registration The site Geaux Vote, run by the Louisiana Secretary of State office, allows residents to check their voter registration status online. Voter ID requirements Louisiana requires voters to present photo identification while voting. Voters can present the following forms of identification. This list was current as of August 14, 2024. Click here to ensure you have the most current information. Louisiana driver's license Louisiana special identification card LA Wallet digital driver's license Military ID or other generally recognized picture identification card that contains the name and signature of the voter Voters who do not have accepted ID may vote by completing a voter identification affidavit. By law, voters who sign an affidavit may be challenged. Registered voters can bring their voter information card to the Office of Motor Vehicles to receive a free Louisiana special identification card.

See also

2020 measures

• 2020 ballot measures
• Taxes on the ballot
• Property on the ballot

Louisiana

• Louisiana ballot measures
• Louisiana ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Louisiana Senate Bill 272 (2020)
• Nov. 3, 2020 Constitutional Amendments Summaries