NOTE: §5 eff. until ratification of the const. amend. proposed by Acts 2024, 3rd Ex. Sess., No. 1.

§5. Motor Vehicle License Tax

            Section 5. The legislature shall impose an annual license tax of not more than one dollar per each one thousand dollars of actual value on automobiles for private use based on the actual value of the vehicle, as provided by law. However, the annual license tax shall not be less than ten dollars per automobile for private use. On other motor vehicles, the legislature shall impose an annual license tax based upon carrying capacity, horsepower, value, weight, or any of these. After satisfying the requirements of Section 9(B) of this Article, and after satisfying pledges respecting that portion of the revenues attributable to the tax rates in effect at the time of such pledges for the payment of obligations for bonds or other evidences of indebtedness and upon the creation of a Transportation Trust Fund within this constitution, the revenues from the license tax on automobiles for private use shall be deposited therein. In the event no such trust fund is established in this constitution, the revenues shall be used exclusively and solely as provided by law for the construction, maintenance, and safety of the federal and state system of roads and bridges, for the parish and municipal road systems, for the operations of the office of state police, Department of Public Safety and Corrections or its successor, and for the payment of any obligation for bonds issued or indebtedness incurred in connection with any of the foregoing, which bonds may be issued as revenue bonds under Article VII, Section 6(C) of this constitution, subject to existing pledges only as to that portion of the tax collections attributable to the rates in effect at the time of such pledges for the payment of any obligations for bonds or other evidences of indebtedness outstanding on the effective date of this Section. No parish or municipality may impose a license fee on motor vehicles.

NOTE: §5 eff. upon ratification of the const. amend. proposed by Acts 2024, 3rd Ex. Sess., No. 1.

§5. Power to Tax; Limitations

            Section 5.(A) A political subdivision shall not levy a severance tax, income tax, inheritance tax, or tax on motor fuel.

            (B) Effective January 1, 2026, no new sales and use tax exemption, exclusion, credit, rebate, or refund shall be enacted unless the proposed exemption, exclusion, credit, rebate, or refund is applicable to both sales and use taxes levied by the state and those levied by political subdivisions.

            (C) No new tax or fee upon the sale or transfer of immovable property, including documentary transaction taxes or fees, or any other tax or fee, shall be levied by the state of Louisiana, by a political subdivision whose boundaries are coterminous with those of the state, or by a political subdivision, as defined in Article VI, Section 44(2) of this constitution. A documentary transaction is any transaction pursuant to any instrument, act, writing, or document which transfers or conveys immovable property. Fees for the cost of recordation, filing, or maintenance of documents, or records effectuating the sale or transfer of immovable property, impact fees for development of property, annual parcel fees, and ad valorem taxes shall not be considered taxes or fees upon the sale or transfer of immovable property.

            Amended by Acts 1989, 2nd Ex. Sess., No. 28, §1, approved Oct. 7, 1989, eff. Nov. 7, 1989; Acts 2024, 3rd Ex. Sess., No. 1, §1, See Act.