Bill
HB 314
Allocates $90 million for FY2026-27 Revenue Sharing, detailing parish-based distributions, homestead reimbursements, and complex rules for excess funds to sheriffs, schools, distri
HB 314 (2026) – Louisiana Revenue Sharing: Distribution for FY 2026-2027
Overview
- Purpose: Establish the allocation and distribution framework for the Revenue Sharing Fund for Fiscal Year 2026-2027, totaling $90,000,000. The bill codifies how funds are divided among parishes, the city of New Orleans, and various tax recipient bodies, and sets rules for handling excess funds and certain exemptions.
Key Provisions
1) Definitions and Scope (Section 1)
- Clarifies who qualifies as a “tax recipient body,” including cities, parish governing authorities, school boards, special districts, and other taxing bodies eligible for revenue sharing (with several exclusions noted for specific districts and types of millages).
- Lists specific districts/parishes that are treated as eligible or ineligible for reimbursement, including detailed exclusions (e.g., certain law enforcement districts, levee districts, and specific parish districts).
2) Funding and Allocation (Section 2 and Section 3)
- Funds: $90,000,000 allocated to the Revenue Sharing Fund for FY 2026-2027.
- Parish allocation formula: 80% of the fund distributed to parishes based on population share; 20% distributed based on each parish’s share of the state’s homesteads (as of the most recent homestead data).
3) Distribution Mechanics (Section 4 through Section 5)
- The state treasurer distributes the parish funds to tax collectors and to the City of New Orleans.
- A specified portion of the fund is set aside to reimburse homestead exemptions and to pay sheriff commissions and retirement system deductions.
- Excess funds (after these deductions) are distributed according to detailed local formulas (Section 9) and are subject to numerous parish-specific distributions and limits.
4) Excess Funds and Local Redistributions (Section 6 through Section 12)
- Excess funds are allocated to various entities (sheriffs, retirement systems, school boards, parish authorities, and incorporated municipalities) using percentages and a complex set of parish-by-parish rules (including minimums, proportional shares, and special district allocations).
- Explicit percentages are provided for each parish’s sheriff retirement contribution and retirement system contributions (Section 12 provides tabulated amounts for FY 2026-2027).
- Some parishes have special provisions (e.g., Lafourche, Ouachita, Jefferson, St. Bernard, and others) detailing specific share splits among parish governing authorities, school boards, sheriff offices, and incorporated municipalities, plus targeted uses for certain excess funds.
5) Flexibility and Oversight (Sections 11–15)
- Parish governing authorities may expend excess funds for governmental purposes and allocate portions to tax recipient bodies and other public officials.
- A December/March/May distribution schedule is established, with interim distributions allowed and adjustments for anticipated rolls.
- The Act authorizes corrections by the state treasurer for formula errors (not changing the total appropriation of $90 million) and requires annual reporting by tax collectors and the City of New Orleans detailing recipients, deductions, and excess fund distributions.
Impact and Implications
- Aims to standardize and codify revenue sharing across Louisiana, with a strong emphasis on protecting homestead exemptions and honoring existing commissions and retirement deductions.
- Creates a detailed, district-specific framework that can benefit or constrain local taxing entities depending on population, homestead counts, and historical distribution patterns.
- Changes, if any, would primarily affect how parishes allocate funds to sheriffs, school boards, levee and fire districts, libraries, and municipalities, and how excess funds are distributed.
Note: The bill largely preserves prior structures (FY 2025-2026 distribution) while updating allocations and specifying the $90 million fund and the accompanying distribution rules for FY 2026-2027.
Compiled from official sources — confirm details with the bill’s official record.
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