La. Admin. Code tit. 61 § V-211

Current through Register Vol. 50, No. 6, June 20, 2024

Section V-211 - Industrial Exemption Properties

A. All property of manufacturing establishments with contracts for the exemption from ad valorem taxes with the State Board of Commerce and Industry, or its successor, with the approval of the governor and administered by the Department of Economic Development (DED), shall be listed as exempt at the appropriate exempt percentage, until such time as the contract has expired or is terminated.

B. Any property of manufacturing establishments subject to a contract for the exemption from ad valorem taxes with the State Board of Commerce and Industry, or its successor, shall be assessed under a separate/unique assessment number.

C. Property of manufacturing establishments subject to a contract for the exemption from ad valorem taxes with the State Board of Commerce and Industry, or its successor, shall be reported on the applicable reporting forms, and must include the following information:

1. contract number;

2. start and end dates of the contract;

3. penalty years (if applicable);

4. percent of exemption;

5. original contract amount;

6. revised contract amount (if applicable);

7. millages subject to exemption.

D. Assessors' offices shall review all Industrial Exemption applications and DED contracts issued to determine proper exempt status for ad valorem taxation purposes.

1. If an assessor determines that any portion of an Industrial Exemption is not eligible for ad valorem tax exemption, pursuant to Article VII, Section 21(F) of the Louisiana Constitution of 1974 and rules of the Industrial Tax Exemption Program, the assessor shall informally address concerns to the DED Manager of the Industrial Tax Exemption Program. If informal communication does not satisfactorily answer the assessor's concerns, formal notice shall immediately be submitted to DED, with written ineligibility reasons given.

2. All contract status reports submitted to the assessors' offices by DED and the taxpayer's annual LAT 5-A reports shall be reviewed for accuracy. Any inaccuracies noted shall be reported, in writing, to DED immediately upon discovery.

3. Assessors' offices shall review and confirm contract expiration dates and immediately notify DED, in writing, of any disparity identified. If any exempted manufacturing business is determined to have ceased its operations (business closed) during a contracted exemption period, the assessors' office should provide notice to DED of such cessation.

4. Assessors are urged to obtain rules for the Industrial Tax Exemption Program available at www.lded.state.la.us/come-to-louisiana/business-resources/state-business-incentives/industrial-tax-exemption-program.aspx or by contacting DED's Business Incentives Division.

5. The filing of an advance notice or application for an Industrial Exemption does not exempt property from ad valorem taxes, however, parish tax assessors shall give retroactive effect to a fully approved ITEP contract or renewal, consistent with the terms of the ITEP contract and the rules and regulations of the State Board of Commerce and Industry, and parish tax assessors shall process change order requests and/or approve refund request applications in order to give retroactive effect to such an ITEP contract or refund.

La. Admin. Code tit. 61, § V-211

Promulgated by the Department of Revenue, Tax Commission, LR 31:702 (March 2005), amended LR 32:427 (March 2006), LR 34:677 (April 2008), Amended LR 491036 (6/1/2023).

AUTHORITY NOTE: Promulgated in accordance with the Louisiana Constitution of 1974, Article VII, Section 21(F), R.S. 47:1837, R.S. 47:4301, et seq.