NOTE: §1703 eff. until ratification of the const. amend. proposed by Acts 2024, 3rd Ex. Sess., No. 1.

§1703. Exemptions

            A. Generally. (1) Effective January 1, 1978, and thereafter, there shall be exempt from state, parish, and special ad valorem taxes all property which is declared to be exempt from taxation by Sections 20 and 21 of Article VII of the Constitution and pursuant to the authority contained in Section 17 of Article VI of the Constitution, and no other. However, the exemption for a bona fide homestead, as defined in Subparagraph (1) of Paragraph A of Section 20 of Article VII of the Constitution, for the years 1978 through 1981 only, and in the parish of Orleans through 1982 only, shall be five thousand dollars of assessed valuation. Effective on the first day in January in each parish, in the year in which the appraisal and valuation provisions of Paragraph (F) of Section 18 of Article VII of the Constitution of Louisiana are implemented and thereafter, the exemption, for a bona fide homestead exemption as defined in Section 20 of Article VII of the Constitution, shall be seven thousand, five hundred dollars of the assessed valuation.

            (2) Any taxpayer entitled to the homestead exemption set forth in Article VII, Section 20 of the Constitution of Louisiana must own and occupy the homestead on or before December thirty-first of the calendar year in which the exemption is claimed regardless of its homestead exemption status as of January first of the calendar year in which the homestead exemption is claimed.

            B. Orleans Parish. In the parish of Orleans, the status of real and personal property on the first day of August of each year, except as provided in Paragraph (A)(2) of this Section, shall determine its liability for exemption from taxation for the following calendar year.

            C. Penalties for false statements. Any person who, either in his individual or representative capacity, knowingly makes any false statement or knowingly furnishes any false information in any affidavit or other document that he may present for the purpose of procuring or attempting to procure this tax exemption or benefit under the provisions of this Section, or who knowingly, for the purpose of securing such tax exemption, presents any affidavit or other document containing any false statement, or any person aiding, assisting or abetting any such person in unlawfully and knowingly securing or attempting to secure any such tax exemption, with knowledge of such false or illegal application or such false statement, shall be guilty of a misdemeanor punishable as hereinafter provided.

            Any assessor, deputy assessor, or other official, clerk or employee of the state or any of its political subdivisions, who knowingly reports, lists, or claims any property on which exemption from taxes under Sections 20 and 21 of Article VII of the constitution has been applied for, to be subject to a higher millage for taxation purposes than is the true millage applicable thereto, shall be guilty of a misdemeanor, punishable as hereinafter provided.

            Upon conviction for a violation of any of the provisions of this Subsection the offender shall be punishable by a fine of not less than one hundred dollars, nor more than five hundred dollars, or by imprisonment of not less than one month, nor more than six months, or both.

            D. Undivided ownership. The exemption for a bona fide homestead, as provided for in Subsection A of this Section, when occupied by an heir in the direct line in undivided ownership shall be granted to the full extent provided no other homestead exemption is claimed by that person.

            E. For property damaged during a disaster or emergency, the following shall apply:

            (1)(a) Any homestead receiving the homestead exemption that is damaged or destroyed during a disaster or emergency declared by the governor whose owner is unable to occupy the homestead on or before December thirty-first of a calendar year due to such damage or destruction shall be entitled to claim the exemption by filing with the assessor of the parish in which the homestead was located, an annual affidavit of intent to return and reoccupy the homestead within a period of five years from December thirty-first of the tax year in which the disaster occurred. In no event shall more than one homestead exemption extend or apply to any person in this state.

            (b) For homesteads qualifying for the homestead exemption under the provisions of this Paragraph, after expiration of the five-year period, the owner of a homestead shall be entitled to claim and keep the exemption for a period not to exceed two additional years by filing an annual affidavit of intent to return and reoccupy the homestead with the assessor within the parish where the homestead is situated. A homeowner shall be eligible for this extension only if the homeowner's damage claim to repair or rebuild the damaged or destroyed homestead is filed and pending in a formal appeal process with any federal, state, or local government agency or program offering grants or assistance for repairing or rebuilding damaged or destroyed homes as a result of the disaster, or if a homeowner has a damage claim filed and pending against the insurer of the property. The assessor shall require the homeowner to provide official documentation from the government agency or program evidencing the homeowner's participation in the formal appeal process or official documentation evidencing the homeowner has a damage claim filed and pending against the insurer of the property.

            (c) After expiration of the extension authorized in Subparagraph (b) of this Paragraph, an assessor shall have the authority to grant up to three additional one-year extensions of the homestead exemption on a case-by-case basis. A homeowner shall only be eligible for an additional extension if the owner has made a good faith attempt to secure a contractor or builder to complete the needed repairs or reconstruction of the home but is unable to complete the project due to uncontrollable contractor or builder delays. In order to qualify for this extension, the homeowner shall provide to the assessor documentation evidencing good faith in attempting to secure a contractor or builder to complete the project.

            (2)(a) Any owner entitled to the special assessment level set forth in Article VII, Section 18(G) of the Constitution of Louisiana who is unable to occupy the homestead on or before December thirty-first of a future calendar year due to damage or destruction of the homestead caused by a disaster or emergency declared by the governor shall be entitled to keep the special assessment level of the homestead prior to its damage or destruction on the repaired or rebuilt homestead provided the repaired or rebuilt homestead is occupied by the owner within five years from December thirty-first of the year following the disaster. The assessed value of the land and buildings on which the homestead was located prior to its damage shall not be increased above its assessed value immediately prior to the damage or destruction described in this Paragraph. If the property owner receives a homestead exemption on another homestead during the same five-year period, the damaged or destroyed property shall not be entitled to keep the special assessment level, and the land and buildings shall be assessed in that year at the percentage of fair market value set forth in the constitution. In addition, the owner must also maintain the homestead exemption set forth in Article VII, Section 20(A)(10) of the Constitution of Louisiana to qualify for the special assessment level set forth in Article VII, Section 18(G)(5) of the Constitution of Louisiana.

            (b) Any owner entitled to the special assessment level as provided for in this Paragraph who is unable to reoccupy his homestead within five years from December thirty-first of the year following the disaster shall be eligible for an extension of the special assessment level on the homestead for a period not to exceed two years. A homeowner shall be eligible for this extension only if the homeowner's damage claim is filed and pending in a formal appeal process with any federal, state, or local government agency or program offering grants or assistance for repairing or rebuilding damaged or destroyed homes as a result of the disaster, or if a homeowner has a damage claim filed and pending against the insurer of the property. The homeowner shall apply for this extension of the special assessment level with the assessor of the parish in which the homestead is located. The assessor shall require the homeowner to provide official documentation from the government agency or program evidencing the homeowner's participation in the formal appeal process or official documentation evidencing the homeowner has a damage claim filed and pending against the insurer of the property.

            (c) After expiration of the extension authorized in Subparagraph (b) of this Paragraph, an assessor shall have the authority to grant up to three additional one-year extensions of the special assessment level on a case-by-case basis. A homeowner shall only be eligible for an additional extension if the owner has made a good faith attempt to secure a contractor or builder to complete the needed repairs or reconstruction of the home but is unable to complete the project due to uncontrollable contractor or builder delays. In order to qualify for this extension, the homeowner shall provide to the assessor documentation evidencing good faith in attempting to secure a contractor or builder to complete the project.

NOTE: §1703 eff. upon ratification of the const. amend. proposed by Acts 2024, 3rd Ex. Sess., No. 1.

§1703. Exemptions

            A. Generally. The following property shall be exempt from state, parish, and special ad valorem taxes:

            (1) Public lands and other public property used for public purposes. Land or property owned by another state or owned by a political subdivision of another state shall not be exempt under this Section.

            (2)(a)(i) Property owned by a nonprofit corporation or association organized and operated exclusively for religious, dedicated places of burial, charitable, health, welfare, fraternal, or educational purposes, no part of the net earnings of which inure to the benefit of any private shareholder or member thereof and that is declared to be exempt from federal or state income tax.

            (ii) Medical equipment leased for a term exceeding five years to a nonprofit corporation or association that owns or operates a small, rural hospital and that uses the equipment solely for healthcare purposes at the hospital, provided that the property shall be exempt only during the term of the lease to such corporation or association, and further provided that "small, rural hospital" shall mean a hospital that meets all of the following criteria:

            (aa) It has less than fifty Medicare-licensed acute care beds.

            (bb) It is located in a municipality with a population of less than ten thousand that has been classified as an area with a shortage of health workforce by the United States Department of Health and Human Services, or its successor.

            (b) Property leased to a nonprofit corporation or association for use solely as housing for homeless persons, as defined by regulation adopted by the Louisiana Tax Commission or its successor provided that the term of the lease shall be for at least five years, that as a condition of entering into the lease the property be in compliance with all applicable health and sanitation codes for use as housing for homeless persons, that the lease shall provide that compensation to be paid to the lessor shall not exceed one dollar per year, and that such contract of lease shall recite that the property shall be used exclusively for the purpose of housing the homeless, and further provided that at such time as the property is no longer used solely as housing for homeless persons, the property shall no longer be exempt from taxation.

            (c) Property of a bona fide labor organization representing its members or affiliates in collective bargaining efforts.

            (d) Property of an organization such as a lodge or club organized for charitable and fraternal purposes and practicing the same, and property of a nonprofit corporation devoted to promoting trade, travel, and commerce, and also property of a trade, business, industry or professional society or association, if that property is owned by a nonprofit corporation or association organized under the laws of this state for such purposes.

            (e)(i) None of the property listed in this Paragraph shall be exempt if owned, operated, leased, or used for commercial purposes unrelated to the exempt purposes of the corporation or association.

            (ii) None of the property listed in this Paragraph shall be exempt if the property is owned by a nonprofit corporation or association and the governing authority of the municipality or parish in which the property is located determines all of the following:

            (aa) The property is leased as housing, is in a state of disrepair, and manifests conditions which endanger the health or safety of the public.

            (bb) The owner of the property habitually neglects maintenance of the property as evidenced by three or more sustained code enforcement violations issued for the property in the prior twelve months for matters that endanger the health or safety of residents of the property or of persons in the area surrounding the property. For purposes of this Subitem, matters deemed to endanger health or safety include structural instability due to deterioration; injurious or toxic ventilation; contaminated or inoperable water supply; holes, breaks, rotting materials, or mold in walls; roof defects that admit rain; unsecured overhang extensions in danger of collapse; a hazardous electrical system; improper connection of fuel-burning appliances or equipment; an inactive or inoperable fire detection system; an unsecured or contaminated swimming pool; or any combination of these.

            (iii) An ad valorem tax exemption denied or revoked pursuant to the provisions of Item (ii) of this Subparagraph may be issued or reinstated if the governing authority of the municipality or parish in which the property is located determines that the conditions enumerated in this Subparagraph no longer exist.

            (3) Cash on hand or deposit.

            (4) Stocks and bonds, except bank stocks, the tax on which shall be paid by the banking institution.

            (5) Obligations secured by mortgage on property located in Louisiana and the notes or other evidence thereof.

            (6) Loans by life insurance companies to policyholders, if secured solely by their policies.

            (7) The legal reserve of domestic life insurance companies.

            (8) Loans by a homestead or building and loan association to its members, if secured solely by stock of the association.

            (9) Debts due for merchandise or other articles of commerce or for services rendered.

            (10) Obligations of the state or its political subdivisions.

            (11) Personal property used in the home or on loan in a public place.

            (12) Irrevocably dedicated places of burial held by individuals for purposes of burial of themselves or members of their families.

            (13) Agricultural products while owned by the producer, agricultural machinery, and other implements used exclusively for agricultural purposes, animals on the farm, and property belonging to an agricultural fair association.

            (14) Property used for cultural, Mardi Gras carnival, or civic activities and not operated for profit to the owners.

            (15) Rights-of-way granted to the Department of Transportation and Development.

            (16) Boats using gasoline as motor fuel.

            (17) Commercial vessels used for gathering seafood for human consumption.

            (18) Ships and oceangoing tugs, towboats, and barges engaged in international trade and domiciled in Louisiana ports. However, this exemption shall not apply to harbor, wharf, shed, and other port dues or to any vessel operated in the coastal trade of the states of the United States.

            (19) Materials, boiler fuels, and energy sources used by public utilities to fuel the generation of electricity.

            (20) All incorporeal movables of any kind or nature whatsoever, except public service properties, bank stocks, and credit assessments on premiums written in Louisiana by insurance companies and loan and finance companies. For purposes of this Section, incorporeal movables shall have the meaning set forth in the Louisiana Civil Code of 1870, as amended.

            (21) All artwork including sculptures, glass works, paintings, drawings, signed and numbered posters, photographs, mixed media, collages, or any other item which would be considered as the material result of a creative endeavor which is listed as a consignment article by an art dealer.

            (22)(a) Raw materials, goods, commodities, and articles imported into this state from outside the states of the United States provided that one of the following conditions is met:

            (i) The imports remain on the public property of the port authority or docks of the common carrier where they first entered this state.

            (ii) The imports, other than minerals and ores of the same kind as any mined or produced in this state and manufactured articles, are held in this state in the original form in bales, sacks, barrels, boxes, cartons, containers, or other original packages, and raw materials held in bulk as all or a part of the new material inventory of manufacturers or processors, solely for manufacturing or processing.

            (iii) The imports are held by an importer in any public or private storage in the original form in bales, sacks, barrels, boxes, cartons, containers, or other original packages and agricultural products in bulk. This exemption shall not apply to these imports when held by a retail merchant as part of his stock-in-trade for sale at retail.

            (b) Raw materials, goods, commodities, and other articles being held on the public property of a port authority, on docks of any common carrier, or in a warehouse, grain elevator, dock, wharf, or public storage facility in this state for export to a point outside the states of the United States.

            (c) Goods, commodities, and personal property in public or private storage while in transit through this state which are moving in interstate commerce through or over the territory of the state or which are in public or private storage within Louisiana, having been shipped from outside Louisiana for storage in transit to a final destination outside Louisiana, whether such destination was specified when transportation began or afterward.

            (d) Property described in this Paragraph, whether or not entitled to exemption, shall be reported to the proper taxing authority on the forms required by law.

            (23) Motor vehicles used on the public highways of this state, from state, parish, municipal, and special ad valorem taxes.

            (24)(a) Notwithstanding any contrary provision of this Section, the State Board of Commerce and Industry or its successor, with the approval of the governor, may enter into contracts for the exemption from ad valorem taxes of a new manufacturing establishment or an addition to an existing manufacturing establishment, on terms and conditions the board, with the approval of the governor, deems in the best interest of the state.

            (b) The exemption shall be for an initial term of no more than five calendar years and may be renewed for an additional five years. All property exempted shall be listed on the assessment rolls and submitted to the Louisiana Tax Commission or its successor, but no taxes shall be collected on the exempted property during the period of exemption.

            (c) The terms "manufacturing establishment" and "addition" as used in this Paragraph means a new plant or establishment or an addition or additions to any existing plant or establishment which engages in the business of working raw materials into wares suitable for use or which gives new shapes, qualities, or combinations to matter which already has gone through some artificial process.

            (25) Coal or lignite stockpiled in Louisiana for use in Louisiana for industrial or manufacturing purposes or for boiler fuel, gasification, feedstock, or process purposes.

            (26) Notwithstanding any contrary provision of this Section, the State Board of Commerce and Industry or its successor, with the approval of the governor and the local governing authority, may enter into contracts granting to a property owner, who proposes the expansion, restoration, improvement, or development of an existing structure or structures in a downtown, historic, or economic development district established by a local governing authority or in accordance with law, the right for an initial term of five years after completion of the work to pay ad valorem taxes based upon the assessed valuation of the property for the year prior to the commencement of the expansion, restoration, improvement, or development. Contracts may be renewed, subject to the same conditions, for an additional five years extending such right for a total of ten years from completion of the work.

            (27)(a) Notwithstanding any contrary provision of this Section, the authority or district charged with economic development of each parish may enter into contracts for the exemption from parish, municipal, and special ad valorem taxes of goods held in inventory by distribution centers. In the absence of the existence of an economic development authority or district, the parish governing authority may grant contracts of exemption as are provided for in this Paragraph.

            (b) The contract for exemption shall be on the terms and to the extent, up to and including the full assessed valuation of the goods held in inventory, as the economic development authority or district deems in the best interest of the parish. However, prior to entering into each individual contract, the economic development authority or district must request and receive written approval of the contract, including its terms and an estimated fiscal impact, from each affected tax recipient body in the parish, as evidenced by a favorable vote of a majority of the members of the governing authority of the tax recipient body. Failure to receive all required approvals from the tax recipient bodies before entering into a contract shall render the contract absolutely null and void.

            (c) The term "distribution center" as used in this Paragraph means an establishment engaged in the sale of products for resale or further processing for resale. The term "goods held in inventory" as used in this Paragraph means goods or products which have been given new shapes, qualities, or combinations through some artificial process and does not include raw materials such as natural gas, crude oil, sulphur, or timber or goods or products held for sale to consumers.

            (28)(a) Drilling rigs used exclusively for the exploration and development of minerals outside the territorial limits of the state in Outer Continental Shelf waters which are within the state for the purpose of being stored or stacked for use outside the territorial limits of the state, or for the purpose of being converted, renovated, or repaired, and any property in the state for the purpose of being incorporated in, or to be used in the operation of the drilling rigs.

            (b) The exemption provided in this Paragraph shall be applicable in any parish in which the exemption has been approved by a majority of the electors of the parish voting thereon at an election called for that purpose.

            (29)(a)(i) In addition to the homestead exemption, provided pursuant to Article VII, Section 34 of the Constitution of Louisiana, which applies to the first seven thousand five hundred dollars of the assessed valuation of property, the next two thousand five hundred dollars of the assessed valuation of property receiving the homestead exemption that is owned and occupied by a veteran with a service-connected disability rating of fifty percent or more but less than seventy percent by the United States Department of Veterans Affairs shall be exempt from ad valorem taxation. The surviving spouse of a deceased veteran with a service-connected disability rating of fifty percent or more but less than seventy percent by the United States Department of Veterans Affairs shall be eligible for this exemption if the surviving spouse occupies and remains the owner of the property, whether or not the exemption was in effect on the property prior to the death of the veteran. If property eligible for the exemption provided for in this Item has an assessed value in excess of ten thousand dollars, ad valorem property taxes shall apply to the assessment in excess of ten thousand dollars.

            (ii) In addition to the homestead exemption, provided pursuant to Article VII, Section 34 of the Constitution of Louisiana, which applies to the first seven thousand five hundred dollars of the assessed valuation of property, the next four thousand five hundred dollars of the assessed valuation of property owned and occupied by a veteran with a service-connected disability rating of seventy percent or more but less than one hundred percent by the United States Department of Veterans Affairs shall be exempt from ad valorem taxation. The surviving spouse of a deceased veteran with a service-connected disability rating of seventy percent or more but less than one hundred percent by the United States Department of Veterans Affairs shall be eligible for this exemption if the surviving spouse occupies and remains the owner of the property, whether or not the exemption was in effect on the property prior to the death of the veteran. If property eligible for the exemption provided for in this Item has an assessed value in excess of twelve thousand dollars, ad valorem property taxes shall apply to the assessment in excess of twelve thousand dollars.

            (iii) In addition to the homestead exemption, provided pursuant to Article VII, Section 34 of the Constitution of Louisiana, which applies to the first seven thousand five hundred dollars of the assessed valuation of property, the remaining assessed valuation of property receiving the homestead exemption that is owned and occupied by a veteran with a service-connected disability rating of one hundred percent unemployability or totally disabled by the United States Department of Veterans Affairs shall be exempt from ad valorem taxation. The surviving spouse of a deceased veteran with a service-connected disability rating of one hundred percent unemployability or totally disabled by the United States Department of Veterans Affairs shall be eligible for this exemption if the surviving spouse occupies and remains the owner of the property, whether or not the exemption was in effect on the property prior to the death of the veteran.

            (b) Notwithstanding any provision of the law to the contrary, the property assessment of a property for which an exemption established pursuant to this Paragraph has been claimed, to the extent of the applicable exemption, shall not be treated as taxable property for purposes of any subsequent reappraisals and valuation for millage adjustment purposes. The decrease in the total amount of ad valorem tax collected by a taxing authority as a result of the exemption shall be absorbed by the taxing authority and shall not create any additional tax liability for other taxpayers in the taxing district as a result of any subsequent reappraisal and valuation or millage adjustment. Implementation of the exemption authorized in this Paragraph shall neither trigger nor be cause for a reappraisal of property or an adjustment of millages.

            (c) A trust shall be eligible for the exemption provided for in this Paragraph.

            (30)(a) Except as otherwise provided herein, property owned or leased by, and used by, a targeted nonmanufacturing business in the operation of its facility, including buildings, improvements, equipment, and other property necessary or beneficial to such operation, according to a program and pursuant to contracts of exemption which contain such terms and conditions. Land underlying the facility and other property pertaining to the facility on which ad valorem taxes have previously been paid, inventories, consumables, and property eligible for the manufacturing exemption provided by Paragraph (24) of this Subsection, shall not be exempt pursuant to this Paragraph.

            (b) Ad valorem taxes shall apply to the assessed valuation of the first ten million dollars or ten percent of fair market value, whichever is greater, and this amount of property shall not be exempt pursuant to this Paragraph.

            (c) A targeted nonmanufacturing business means at least fifty percent of such business's total annual sales from a site or sites in the state is to out-of-state customers or buyers, or to in-state customers or buyers but the product or service is resold by the purchaser to an out-of-state customer or buyer for ultimate use, or to the federal government, or any combination thereof.

            (d) A contract for the exemption shall be available only in parishes which have agreed to participate.

            (31)(a) There is hereby established an exemption from ad valorem tax for the total assessed value of the homestead of the unmarried surviving spouse of a person who died under the conditions enumerated in Item (b)(i) of this Paragraph, and if the conditions established in Item (b)(ii) of this Paragraph are met.

            (b)(i) The exemption shall apply beginning in the tax year in which any of the following persons died:

            (aa) A member of the armed forces of the United States or Louisiana National Guard who died while on active duty.

            (bb) A state police officer who died while on duty.

            (cc) A law enforcement or fire protection officer who qualified for the salary supplement authorized in Article VII, Section 14(D)(3) of the Constitution of Louisiana who died while on duty or who would have qualified if he had completed the first year of his employment before his death.

            (dd) An emergency medical responder, technician, or paramedic, as such terms may be defined by law, who died while performing the duties of their employment.

            (ee) A volunteer firefighter, verified by the office of the state fire marshal to have died while performing firefighting duties.

            (ii)(aa) The property is eligible for the homestead exemption and the property was the residence of a person listed within Item (i) of this Subparagraph at the time of that person's death.

            (bb) The surviving spouse has not remarried.

            (cc) The surviving spouse annually provides evidence of their eligibility for the exemption in accordance with the requirements of Subparagraph (c) of this Paragraph.

            (c) Each assessor shall establish a procedure whereby a person may annually apply for the exemption. Eligibility for the exemption shall be established by the production of documents and certification of information by the surviving spouse to the assessor as follows:

            (i) In an initial application for the exemption, the surviving spouse shall produce documentation issued by their deceased spouse's employer evidencing the death.

            (ii) For purposes of the continuation of an existing exemption, the surviving spouse shall annually provide a sworn statement to the assessor attesting to the fact that the surviving spouse has not remarried.

            (d) Once an unmarried surviving spouse has qualified for and taken the exemption, if the surviving spouse then acquires a different property which qualifies for the homestead exemption, the surviving spouse shall be entitled to an exemption on that subsequent homestead, the exemption being limited in value to the amount of the exemption claimed on the prior homestead in the last year for which the exemption was claimed. The assessor may require the submission of certain information concerning the amount of the exemption on the prior homestead for purposes of determining the extent of the exemption available for the subsequent homestead.

            (e) A trust shall be eligible for the exemption provided for in this Paragraph.

            (32)(a) All property delivered to a construction project site for the purpose of incorporating the property into any tract of land, building, or other construction as a component part, including the type of property that may be deemed to be a component part once placed on an immovable for its service and improvement pursuant to the provisions of the Louisiana Civil Code of 1870. The exemption provided for in this Paragraph shall be applicable until the construction project for which the property has been delivered is complete. A construction project shall be deemed complete when construction is finished to the extent that the project can be used or occupied for its intended purpose. A construction project shall not be deemed complete during its inspection, testing, or commissioning stages, as defined by reasonable industry standards.

            (b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph, this exemption shall not apply to any of the following:

            (i) Any portion of a construction project that is complete, available for its intended use, or operational on the date that property is assessed.

            (ii) 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.

            (iii) Any public service property, unless the public service property is otherwise eligible for an exemption provided by any other provision of law.

            (33)(a) In addition to the homestead exemption provided pursuant to Article VII, Section 34 of the Constitution of Louisiana, which applies to the first seven thousand five hundred dollars of the assessed valuation of property, a parish governing authority may approve an ad valorem tax exemption of up to two thousand five hundred dollars of the assessed valuation of property receiving the homestead exemption that is owned and occupied by a qualified first responder.

            (b) For the purposes of this Paragraph, "first responder" means a volunteer firefighter who has completed within the tax year no fewer than twenty-four hours of firefighter continuing education and is an active member of the Louisiana State Firemen's Association or is on the departmental personnel roster of the Volunteer Firefighter Insurance Program of the office of state fire marshal. For the purposes of this Paragraph, "first responder" means a full-time public employee whose duties include responding rapidly to an emergency and who resides in the same parish in which their employer is located. The term includes the following:

            (i) Peace officer, which means any sheriff, police officer, or other person deputized by proper authority to serve as a peace officer.

            (ii) Fire protection personnel.

            (iii) An individual certified as emergency medical services personnel.

            (iv) An emergency response operator or emergency services dispatcher who provides communication support services for an agency by responding to requests for assistance in emergencies.

            (c) The exemption provided for in this Paragraph shall only apply in a parish if it is approved by the parish governing authority.

            (d) Each tax assessor shall establish a procedure whereby a person may annually apply for the exemption which shall include the production of documents by the first responder. In the application for the exemption, the first responder shall produce documentation issued by his employer evidencing employment for the taxable period for which the exemption is being requested.

            (e) Notwithstanding any provision of the law to the contrary, any decrease in the total amount of ad valorem tax collected by the taxing authority as a result of an ad valorem tax exemption granted pursuant to this Paragraph shall be absorbed by the taxing authority and shall not create any additional tax liability for other taxpayers in the taxing district as a result of any subsequent reappraisal and valuation or millage adjustment. Implementation of the exemption authorized in this Paragraph shall neither trigger nor be cause for a reappraisal of property or an adjustment of millages.

            B.(1) There shall be an optional ad valorem tax exemption on items constituting business inventory, including goods which are held for sale and goods in production or for ultimate consumption in the production of goods or services for sale.

            (2) The exemption provided for in this Subsection shall only apply in parishes in which the sheriff, school board, and the parish governing authority elect to exempt business inventory from ad valorem taxation.

            (3) The exemption election shall be evidenced in writing and shall indicate if the parish will implement the full exemption immediately or over a period not to exceed five years. The election shall be made no later than July 1, 2026, and shall be applicable to taxable periods beginning on or after January 1, 2026. Any election made pursuant to this Subsection shall be irrevocable.

            (4)(a) A parish electing to exempt items constituting business inventory shall receive a payment in accordance with Article VII, Section 37 of the Constitution of Louisiana and R.S. 39:100.112. The tax collector of each parish electing to exempt items constituting business inventory shall distribute the monies received from the treasurer on a pro rata basis to each taxing authority that levies an ad valorem tax within the parish. The treasurer shall disburse monies to the collector within thirty days of receipt of a certification from the secretary of the Department of Revenue that the parish has irrevocably elected to exempt business inventory from ad valorem tax.

            (b) Any parish that elects to exempt one hundred percent of business inventory from ad valorem tax and implements the exemption immediately shall receive a payment equal to the greater of thrice the amount of ad valorem taxes collected on business inventory within the parish for the 2023 tax year as calculated in the chart provided for in Subparagraph (d) of this Paragraph or one million dollars. However, the maximum amount a parish may receive pursuant to the provisions of this Subparagraph shall not exceed fifteen million dollars.

            (c) Any parish that elects to phase-in an exemption of business inventory from ad valorem tax over a period not to exceed five years shall receive a payment equal to the greater of the amount of ad valorem taxes collected on business inventory within the parish for the 2023 tax year as calculated in the chart provided for in Subparagraph (d) of this Paragraph or five hundred thousand dollars. However, the maximum amount a parish may receive pursuant to the provisions of this Subparagraph shall not exceed ten million dollars.

            (d) Payments to parishes electing to exempt items constituting business inventory shall be as follows:

            (5) A parish may elect to exempt ad valorem tax on items constituting business inventory at any time, in accordance with the provisions of this Subsection. However, any parish electing to exempt business inventory from ad valorem tax on or after July 2, 2026, shall not receive a payment in accordance with Article VII, Section 37 of the Constitution of Louisiana and R.S. 39:100.112.

            (6) Property for which the exemption authorized in this Subsection has been claimed shall not be treated as taxable property for purposes of any subsequent reappraisals and valuation for millage adjustment purposes pursuant to R.S. 47:1708. Any decrease in the total amount of ad valorem tax collected by a taxing authority as a result of the ad valorem exemption authorized in this Subsection shall be absorbed by the taxing authority and shall not create any additional tax liability for taxpayers in the taxing district as a result of any subsequent reappraisal and valuation or millage adjustment. Implementation of the exemption authorized in this Subsection shall neither trigger nor be cause for a reappraisal of property or an adjustment of millages pursuant to R.S. 47:1708.

            Acts 1962, No. 316, §1. Amended by Acts 1976, No. 387, §1, eff. Jan. 1, 1978; Acts 1978, No. 666, §1, eff. Jan. 1, 1979; Acts 1981, No. 432, §1; H.C.R. No. 88, 1993 R.S., eff. May 30, 1993; H.C.R. No. 1, 1994 R.S., eff. May 11, 1994; Acts 2004, No. 313, §1, eff. June 18, 2004; Acts 2005, No. 382, §1, eff. June 30, 2005; Acts 2005, 1^st Ex. Sess., No. 30, §1, eff. Oct. 31, 2006; Acts 2006, 1^st Ex. Sess., No. 24, §1, eff. Feb. 23, 2006; Acts 2010, No. 865, §1, eff. Jan. 1, 2011; Acts 2024, 3rd Ex. Sess., No. 12, §1, eff. See Act.