With a 75-20 vote, the House approved a proposed amendment to the Louisiana constitution on Tuesday that would permit local governments to seek payments in lieu of taxes from manufacturers eligible for the state 10-year industrial tax exemptions.
As The American Press reports, the amendment—if approved by voters in October—would legalize the process, which is known as PILOT.
The issue can be traced back to a Cameron Parish plan to bring in money to cash-poor tax bodies sooner rather than later. Cameron Parish taxing agencies lost court battles that would have allowed Cameron LNG to pay a fixed amount in taxes now instead of at the end of its exemption.
“The goal of this from day one has been to achieve a sustainable quality of life for the people of Cameron,” Cameron Parish Administrator Ryan Bourriaque said in January. “If that meant collecting less early, we were OK with that.”
Under the Cameron proposal, the parish would begin collecting a fixed amount—$503.5 million over the next 23 years—instead of an estimated $1.5 billion in property taxes starting in 2029.
The parish tax assessor, represented by Baton Rouge attorney Brian Eddington, opposed the plan on grounds that it was unconstitutional and taxpayers would pay less than they would after 10 years.
PILOT supporters say the legislation would give taxing authorities more freedom to negotiate tax plans with incoming industries. The legislation has the support of the Louisiana Police Jury Association, the Louisiana Municipal Association and economic development groups in the state, including those in Southwest Louisiana.
