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Louisiana Amendment 1, No Property Tax on Properties Under Construction Measure (October 2017)
| Louisiana Amendment 1 | |
|---|---|
 | |
| Election date October 14, 2017 | |
| Topic Taxes and Property | |
Status Approved | |
| Type Constitutional amendment | Origin State legislature |
| 2017 measures |
|---|
 |
| October 14, 2017 |
| Louisiana Amendment 1 |
| Louisiana Amendment 2 |
| Louisiana Amendment 3 |
Louisiana Amendment 1, the No Property Tax on Properties Under Construction Amendment, was on the ballot in Louisiana as a legislatively referred constitutional amendment on October 14, 2017.[1] The measure was approved.
| A "yes" vote supported this amendment to exempt construction projects from property taxes until construction is completed. |
| A "no" vote opposed this amendment to exempt construction projects from property taxes until construction is completed. |
Election results
| Amendment 1 | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 266,133 | 65.60% | ||
| No | 139,549 | 34.40% | ||
- Election results from Louisiana Secretary of State
Overview
Amendment design
Amendment 1 exempted construction projects from property taxes until construction is completed. The measure defined a completed construction as occurring when the property "can be used or occupied for its intended purpose." The measure did not exempt certain construction projects from property taxes, including: (a) portions of a construction project completed or available for its intended use on the day the property is assessed; (b) phases of a construction project completed or available for its intended use on the day the property is assessed; and (c) public service properties.[1]
Assessments on buildings under construction
As of 2017, the Louisiana Tax Commission was responsible for setting the rules that parish assessors use to assess properties. According to the Public Affairs Research Council of Louisiana (PAR), many parish assessors interpreted a commission rule—“Assessments shall be made on the basis of the condition of things”—as meaning that buildings under construction are not assessed and taxed. Amendment 1 created a constitutional amendment requiring that buildings under construction not be assessed and taxed.[2]
Text of measure
Ballot title
The ballot title was as follows:[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?
(Adds Article VII, Section 21(N))[3] |
” |
Ballot summary
The ballot summary was as follows:[4]
| “ | This proposed constitutional amendment was enacted by Act 428 of the 2017 Regular Session of the Louisiana Legislature proposing to add Article VII, Section 21(N) to the Louisiana Constitution.
Present Constitution provides certain exemptions from ad valorem taxes (property taxes), which are property taxes based on the fair market value of all property subject to taxation by the tax assessor in each parish. Proposed Constitutional Amendment adds an exemption for all property delivered to a construction project site for the purpose of using the property in any tract of land, building, or other construction as a component part until the construction project is complete as defined by law and reasonable industry standards. Once the construction project is complete or a phase is complete, available for its intended use, or operational when the property is assessed by the tax assessor, then the exemption no longer applies. This proposed exemption does not apply to public service property unless otherwise provided by the constitution.[3] |
” |
Constitutional changes
- See also: Article VII, Louisiana Constitution
The measure added a Subsection (N) to Section 21 of Article VII of the Louisiana Constitution. The following text was added:[1] Note: Hover over the text and scroll to see the full text.
(2) Notwithstanding the provisions of Subparagraph (1) of this Paragraph, this exemption shall not apply to any of the following:
- (a) Any portion of a construction project that is complete, available for its intended use, or operational on the date that property is assessed.
- (b) For projects constructed in two or more distinct phases, any phase of the construction project that is complete, available for its intended use, or operational on the date the property is assessed.
- (c) Any public service property, unless the public service property is otherwise eligible for an exemption provided by any other provision of this constitution.[3]
Readability score
- See also: Ballot measure readability scores, 2017
| 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 and Louisiana secretary of state wrote the ballot language for this measure.
|
Support
Protect LA Taxpayers, also known as Yes on Amendment 1, led the campaign in support of the amendment.[5]
Supporters
Protect LA Taxpayers listed the following organizations as supporters of the amendment:[5]
- 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
- Association Of Building Contractors
- 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)
Arguments
Protect LA Taxpayers made the following arguments:[5]
| “ |
|
” |
The Council for a Better Louisiana, an organization that supported Amendment 1, stated:[6]
| “ | Companies continue to make billions of dollars in industrial investments in Louisiana under the assumption that there is no property tax to pay on their construction materials. Some of these projects can take years to complete, and a property tax on construction materials could cost them hundreds of millions of dollars.[3] | ” |
The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR crafted the following argument in support of Amendment 1:[2]
| “ | The amendment codifies into the Constitution what has been the practice by most assessors on most development. Without protection, onerous taxation on capital-intensive projects could begin, potentially stifling future manufacturing plans, job growth and economic development. This could result in very different results even among adjacent jurisdictions, further disrupting economic conditions. It is unreasonable for government to force businesses to pay taxes on buildings under construction before those buildings produce a revenue stream that could pay the taxes. The new financial burden on developers and even individual homebuilders could be harmful, with impacts felt throughout the real estate industry. The potential added tax bills could discourage investors from taking on endeavors large and small, stunting growth for the state. Also, this amendment offers clarity about how CWIP should be treated by removing existing legal gray areas. The exemption would help meet the goals of uniform assessments across the state as required by the Constitution, statutory law and regulations. Businesses will be more willing to invest where there is greater predictability.[3] | ” |
Opposition
The Public Affairs Research Council of Louisiana (PAR), a nonprofit organization, published arguments for and against each amendment on the ballot. PAR crafted the following argument in opposition to Amendment 1:[2]
| “ | Businesses get too many tax breaks and this would be another one. Large manufacturing projects already can use the Industrial Tax Exemption Program to avoid property taxes for as many as 10 years. Local governments might need to tax construction work to pay for the increased services that will be needed once the new facility is completed. A large project can create a burden on local government as construction workers temporarily live in the area. The blanket exemption provided by this amendment is too broad. A better approach would be a constitutional amendment allowing statutory controls, giving the Legislature the ability to fine tune the exemption over time. This method would eliminate the need for further constitutional amendments about CWIP just to make small adjustments. This amendment would negate the authority of assessors and the Tax Commission on how to handle CWIP. Assessors are locally elected and need flexibility to handle situations posed by different construction projects. This amendment would tie their hands.[3] | ” |
Campaign finance
| Total campaign contributions: | |
| Support: | $535,900.00 |
| Opposition: | $0.00 |
In 2017, one political action committee, the LA Taxpayer Protection PAC, was registered in support of Amendment 1.[7] The committee had raised $535,900 and expended $505,595.00. The largest contributor to the LA Taxpayer Protection PAC was Louisiana Now, LLC, which contributed $135,500.
There were no political action committees registered in opposition to Amendment 1.
Support
The following table includes the contribution and expenditure totals for the committee in support of the initiative.[7]
|
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Donors
The following were the five donors who contributed to the LA Taxpayer Protection PAC:[7]
| Donor | Cash | In-kind | Total |
|---|---|---|---|
| Louisiana Now, LLC | $135,500.00 | $0.00 | $135,500.00 |
| BG Energy Merchants, LLC | $75,000.00 | $0.00 | $75,000.00 |
| ExxonMobil | $75,000.00 | $0.00 | $75,000.00 |
| Shell | $75,000.00 | $0.00 | $75,000.00 |
| Tellurian Services, LLC | $50,000.00 | $0.00 | $50,000.00 |
Reporting dates
Louisiana ballot measure committees filed a total of three campaign finance reports in 2017. The filing dates for reports were as follows:[8]
| 2017 campaign finance reporting dates | ||
|---|---|---|
| Date | Report | Period |
| 9/14/2017 | Report #1 | Through 9/04/2017 |
| 10/4/2017 | Report #2 | 9/05/2017 - 9/24/2017 |
| 11/27/2017 | Report #3 | 9/25/2017 - 11/13/2017 |
| 2/15/2018 | Report #4 | 11/14/2017 - 12/31/2017 |
Methodology
To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.
Media editorials
- See also: 2017 ballot measure media endorsements
Support
- The Advocate said: "The amendment makes it clear that completed portions of a major construction project should be placed on the rolls, but that materials stockpiled for a long-term construction project are not taxable. We urge voters to approve the amendment, although this type of law should be part of the statute books and not the constitution.[9]
Opposition
Ballotpedia did not find media editorials opposing Amendment 1. If you are aware of an editorial, please email it to editor@ballotpedia.org.
Background
Referred amendments on the ballot
From 1995 through 2016, the Louisiana State Legislature referred 176 constitutional amendments to the ballot. Voters approved 130 and rejected 46 of the referred amendments. Most of the amendments (115 of 176) were referred to the ballot for elections during even-numbered election years. The average number of amendments appearing on an odd-year ballot was between five and six. The approval rate at the ballot box was 73.9 percent during the 21-year period from 1995 through 2016. The rejection rate was 26.1 percent. In 2016, there were six referred amendments on the ballot. In 2015, there were four amendments.
| Legislatively-referred constitutional amendments, 1995-2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Total number | Approved | Percent approved | Defeated | Percent defeated | Odd-year average | Odd-year median | Odd-year minimum | Odd-year maximum | |
| 176 | 130 | 73.86% | 46 | 26.14% | 5.55 | 4.00 | 0 | 16 | |
Path to the ballot
- See also: Amending the Louisiana Constitution
In Louisiana, a two-thirds vote in both chambers of the Louisiana State Legislature during one legislative session is required to refer a constitutional amendment to the ballot. Louisiana is one of 16 states that require a two-thirds supermajority in each chamber of the legislature.
Amendment
Sen. Mike Walsworth (R-33) filed the amendment in the state legislature as Senate Bill 140 (SB 140) on March 30, 2017. The Louisiana Senate approved the measure 35 to 0 with three members absent on May 17, 2017. The Louisiana House of Representatives voted to add three amendments to the bill. On June 5, the state House approved the measure 100 to 4 with one member absent. As the House amended the measure, the Senate was required to concur with the changes. On June 6, 2017, the Senate voted 38 to 0 to pass the measure.[10]
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House Bill 142
House Bill 142 (HB 142) was designed to call for a special election on October 14, 2017, for voters to address proposed constitutional amendments. Rep. Stephen Pugh (R-73) introduced HB 142. The Louisiana House of Representatives approved the bill, 102 to 0 with two members absent and one seat vacant, on April 26, 2017. The Louisiana Senate passed the bill 38 to 0 on May 31, 2017. Gov. John Bel Edwards (D) signed the bill on June 12, 2017.[11]
According to the Legislative Fiscal Office, HB 142 did not create additional government costs because a special election to elect the state treasurer was already scheduled for October 14, 2017.[12]
State profile
| Demographic data for Louisiana | ||
|---|---|---|
| Louisiana | U.S. | |
| Total population: | 4,668,960 | 316,515,021 |
| Land area (sq mi): | 43,204 | 3,531,905 |
| Race and ethnicity** | ||
| White: | 62.8% | 73.6% |
| Black/African American: | 32.1% | 12.6% |
| Asian: | 1.7% | 5.1% |
| Native American: | 0.6% | 0.8% |
| Pacific Islander: | 0% | 0.2% |
| Two or more: | 1.8% | 3% |
| Hispanic/Latino: | 4.7% | 17.1% |
| Education | ||
| High school graduation rate: | 83.4% | 86.7% |
| College graduation rate: | 22.5% | 29.8% |
| Income | ||
| Median household income: | $45,047 | $53,889 |
| Persons below poverty level: | 23.3% | 11.3% |
| Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Louisiana. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here. | ||
Presidential voting pattern
- See also: Presidential voting trends in Louisiana
Louisiana voted Republican in all seven presidential elections between 2000 and 2024.
More Louisiana coverage on Ballotpedia
- Elections in Louisiana
- United States congressional delegations from Louisiana
- Public policy in Louisiana
- Endorsers in Louisiana
- Louisiana fact checks
- More...
Related measures
- See also: Taxes on the ballot
See also
External links
Recent news
The link below is to the most recent stories in a Google news search for the terms Louisiana 2017 Property Tax Under Construction Amendment 1. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
Footnotes
- ↑ 1.0 1.1 1.2 1.3 Louisiana Legislature, "Senate Bill 140," accessed May 19, 2017
- ↑ 2.0 2.1 2.2 Public Affairs Research Council of Louisiana, "PAR Guide to the 2017 Constitutional Amendments," accessed September 18, 2017
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ Louisiana Secretary of State, "State of Proposed Constitutional Amendments," accessed August 10, 2017
- ↑ 5.0 5.1 5.2 Protect LA Taxpayers, "Homepage," accessed September 6, 2017
- ↑ NWF Daily News, "Council for a Better Louisiana supports two proposed amendments," September 17, 2017
- ↑ 7.0 7.1 7.2 Louisiana Ethics Administration Program, "Political Action Committees," accessed June 21, 2017
- ↑ Louisiana Ethics Administration Program, "Schedule of Reporting and Filing Dates for October 14, 2017 Proposition Election," accessed September 6, 2017
- ↑ The Advocate, "Our Views: Three amendments before voters," September 28, 2017
- ↑ Louisiana Legislature, "SB 140 Overview," accessed May 19, 2017
- ↑ Louisiana Legislature, "HB 142 Overview," accessed May 9, 2017
- ↑ Louisiana Legislature, "HB 142 Fiscal Note," accessed May 9, 2017
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