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HB 366

TAX/AD VALOREM TAX: (Constitutional Amendment) Authorizes parishes to exempt business inventory from ad valorem taxes and authorizes parishes to reduce the percentage of fair market value applicable to business inventory (EN SEE FISC NOTE GF EX See Note)

2025 Regular Session Introduced by Daryl Deshotel

Constitutional amendment allowing Louisiana parishes to fully exempt or reduce assessed value of business inventory for ad valorem tax purposes, trading potential business attraction for local tax revenue.

Taken by the Clerk of the House and presented to the Secretary of State in accordance with the Rules of the House.
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Bill Summary · HB 366

Legislative bill overview

HB 366 is a constitutional amendment that grants Louisiana parishes the authority to either fully exempt business inventory from ad valorem (property) taxes or reduce the assessed percentage of fair market value used to calculate those taxes. This gives local governments discretion over how inventory—goods held for sale or use in business operations—is taxed at the parish level.

Why is this important

Business inventory taxation directly affects operational costs for retailers, warehouses, manufacturers, and distributors. By allowing parishes to reduce or eliminate these taxes, the amendment aims to make Louisiana more competitive for attracting or retaining businesses, though it simultaneously reduces parish tax revenue that funds local services like schools, infrastructure, and emergency services.

Potential points of contention

  • Revenue impact: Parishes that exempt or reduce inventory taxes will experience decreased revenue, potentially requiring cuts to services or increased reliance on other tax sources
  • Competitive disparities: Businesses in parishes that offer exemptions gain advantages over those in parishes that don't, creating uneven playing fields within the state
  • Urban vs. rural effects: Parishes with significant warehouse and distribution centers may see substantial revenue loss, while others with minimal inventory operations see minimal benefit
  • Permanent constitutional change: Once enacted, reversing this authority would require another constitutional amendment rather than simple legislation

Compiled from official sources — confirm details with the bill’s official record.

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