HB 217

ENROLLED
 2026 Regular Session
  ACT No. 422
 HOUSE BILL NO. 217
 BY REPRESENTATIVES CHANCE HENRY, BACALA, BAMBURG, BILLINGS,
  BRYANT, CHASSION, COX, FISHER, HEBERT, JACKSON, TRAVIS
  JOHNSON, MANDIE LANDRY, TERRY LANDRY, MARCELLE, MARTINEZ,
  MCMAHEN, WALTERS, WYBLE, AND YOUNG AND SENATORS BARROW,
  BOUDREAUX, JACKSON-ANDREWS, JENKINS, AND PRICE
1AN ACT
2 To enact R.S. 47:1703.2, relative to ad valorem taxes; to provide for ad valorem property tax
3exemptions; to authorize parishes to grant ad valorem tax exemptions for certain
4property; to provide for administration of the exemptions; to provide for definitions;
5to provide for limitations and requirements; to authorize the promulgation of rules;
6to provide for applicability; to provide for effectiveness; and to provide for related
7matters.
8 Be it enacted by the Legislature of Louisiana:
9Section 1. R.S. 47:1703.2 is hereby enacted to read as follows:
10§1703.2. Exemption; optional exemption for certain rehabilitated property
11A. The purpose of this Section is to provide for implementation of the
12optional ad valorem tax exemption authorized pursuant to Article VII, Section 21(P)
13of the Constitution of Louisiana for blighted or derelict property that has been
14rehabilitated. If implemented by a parish, the exemption shall apply to all millages
15imposed within the parish and shall be subject to the conditions, requirements, and
16limitations established in this Section.
17B. For purposes of this Section, the following terms shall have the meanings
18ascribed to them in this Subsection:
19(1) "Blighted property" means any immovable property that has been
20declared or certified as blighted and declared a public nuisance by a court of
21competent jurisdiction or an administrative hearing officer acting in accordance with
22applicable law.
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1(2) "Derelict property" means any building or other structure which has any
2of the following characteristics:
3(a) Is structurally unsafe.
4(b) Does not have adequate egress.
5(c) Constitutes a fire hazard.
6(d) Is otherwise dangerous to human life.
7(e) Because of existing use or condition, constitutes a hazard to public safety,
8health, or welfare by reason of inadequate maintenance, dilapidation, obsolescence,
9fire hazard, or abandonment.
10C. A parish governing authority may, by resolution, elect to implement the
11ad valorem tax exemption authorized in Article VII, Section 21(P) of the
12Constitution of Louisiana for blighted or derelict property that has been rehabilitated.
13Any parish governing authority that elects to implement the exemption shall
14establish all of the following:
15(1) A process by which a property owner may apply for the exemption.
16(2) Rehabilitation standards that a property must meet in order to qualify for
17the exemption.
18(3) Criteria for approving an application for the exemption.
19(4) Conditions for revocation of a previously approved exemption.
20(5) Any other policies or procedures as may be necessary for administration
21of the exemption.
22D. The terms of the exemption shall be as follows:
23(1) For residential property, not more than seventy-five percent of the
24assessed value of the property may be exempted from ad valorem taxation for a
25period not exceeding twenty years.
26(2) For a tract or lot of unimproved land, not more than twenty-five percent
27of the assessed value of the property may be exempted from ad valorem taxation for
28a period not exceeding ten years. In order to qualify for the exemption, a tract or lot
29of unimproved land shall be adjacent to a tract or lot upon which a residential or
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1commercial structure is situated. No property owner may be granted exemptions for
2more than two tracts or lots of unimproved land.
3E. No property owner shall be eligible for any exemption authorized
4pursuant to this Section unless the owner holds title to the property identified in the
5application for the exemption.
6F. The Louisiana Tax Commission may promulgate rules in accordance with
7the Administrative Procedure Act as are necessary to implement the provisions of
8this Section.
9G. Notwithstanding any provision of this Section to the contrary, a parish or
10municipality may elect, by ordinance or resolution, to opt out of the property tax
11limitations established herein for properties that are:
12(1) Located within a designated redevelopment area, blight elimination zone,
13or similar district established by the governing authority; and
14(2) Subject to an adopted redevelopment plan that includes the use of
15property tax revenues to support public financing mechanisms, including but not
16limited to bonds, reimbursements, or other tools intended to address appraisal gaps
17or fund site preparation, infrastructure, or redevelopment costs.
18H. For purposes of this Section, a redevelopment area may include any
19geographic area designated by the governing authority, including areas up to and
20including the full jurisdictional boundaries of the governing authority, as defined in
21the adopted redevelopment plan.
22I. The governing authority may designate one or more public entities,
23nonprofit organizations, or qualified development entities to support the creation,
24implementation, or administration of redevelopment plans, to assist in accessing or
25deploying financing mechanisms authorized under such plans, and to facilitate or
26undertake redevelopment activities necessary to carry out such plans.
27J. The duration, scope, and application of any such election shall be
28determined by the governing authority in accordance with the adopted
29redevelopment plan and applicable law.
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1K.   Any governing authority or designated entity responsible for the
2administration or investment of property tax revenues pursuant to a redevelopment
3plan adopted under this Section that includes the use of such revenues to support the
4redevelopment of blighted or formerly blighted properties shall be subject to
5financial oversight, including periodic audits or financial reporting, in accordance
6with applicable law or as determined appropriate by the governing authority.
7Section 2. The provisions of this Act shall apply to tax years beginning on or after
8 January 1, 2027.
9Section 3. This Act shall become effective on January 1, 2027, but only if the
10 proposed amendment of Article VII of the Constitution of Louisiana contained in the Act
11 which originated as House Bill No. 214 of this 2026 Regular Session of the Legislature is
12 adopted at a statewide election and becomes effective.
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  PRESIDENT OF THE SENATE
  GOVERNOR OF THE STATE OF LOUISIANA
 APPROVED:
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