2023 Louisiana Laws › Revised Statutes › Title 33 - Municipalities and Parishes › §33:3031. Mid City Research and Technology Zone; East Baton Rouge Parish

RS 33:3031 - Mid City Research and Technology Zone; East Baton Rouge Parish
A.(1)(a)(i) Within the inducement zone described in Subsection C of this Section, referred to in this Section as the "zone", the State Board of Commerce and Industry, referred to in this Section as the "commerce board", with the approval of the governor, may enter into contracts for periods not exceeding five years with concerns located or to be located in the zone under which such concerns are granted rebates of or exemptions from the taxes imposed by this state and by political subdivisions as provided in Paragraph (3) of this Subsection, under the terms, conditions, and limitations specified in this Subsection and subject to such other terms, conditions, and limitations as the commerce board, on recommendation of the Department of Economic Development, deems to be in the best interests of the state.
(ii) No contract shall be granted pursuant to this Part, and no tax benefit shall be granted or allowed, unless the applicant agrees to all of the following:
(aa) Not less than one hundred percent of the premium for a health care policy for full-time employees, and fifty percent of the premium for a health care policy for dependents of such employees, shall be paid by the employer. Not less than fifty percent of the premium for part-time employees who choose to participate shall be paid by the employer, but the employer shall not be required to pay any premium for his dependents.
(bb) Eighty percent of the jobs to be created by the applicant shall be full-time-equivalent employment. All jobs created shall be at a gross annual cash wage equal to no less than twice the minimum hourly wage required by law, multiplied by two thousand eighty hours. The job shall not have existed in this state prior to the application for a contract under this Part. For purposes of this Subitem, "full-time employment" means employment in a job to work not less than thirty-five hours per week.
(iii) No contract shall be granted to any applicant which will establish a business that is a gaming establishment, which is a business in a gaming-related business, or which is or will be owned or controlled to the extent of twenty-five percent of any ownership interest by such an entity or an affiliate or subsidiary of such entity.
(iv) No contract shall be granted for any of the rebates or exemptions provided for in this Section which are not directly related to the establishment within the inducement zone; and no tax benefit shall be granted for any tax or portion of a tax applicable to operations or activities of a business outside the zone.
(v) The zone provided for in this Part shall have no authority to enact a tax or to issue bonds.
(b) Each contract entered into under authority of this Subsection may be renewed for periods of up to five years, provided that the total number of years of rebate or exemption shall not exceed ten years. Rebates or exemptions may only be granted for expenditures made after the date of the preliminary approval by the commerce board. Any renewal of a rebate or exemption shall become effective only if the governing authority levying the tax approves such renewal prior to action by the commerce board to renew such rebate or exemption.
(c) The authority of the commerce board to contract for rebates of taxation of a political subdivision shall become effective when the governing authority of the political subdivision files with the commerce board a resolution, duly adopted by the governing authority, which provides for participation by the political subdivision in the program provided by this Subsection and provides that the commerce board is authorized to grant rebates from the taxation of the political subdivision as provided in this Subsection.
(d) Upon violation of any of the terms and conditions of the contract under which rebates or exemptions are granted, the commerce board, with approval of the governor, shall give notice thereof in writing, and unless the violation is corrected within ninety days, any remaining portion of the rebate of or exemption from taxation granted under any contract entered into under this Subsection may be terminated.
(e)(i) All rebates of or exemptions from state taxation granted under contracts entered into under authority of this Subsection shall be listed, together with the amount thereof, by the commerce board, and a copy of each such listing shall be submitted to the Department of Revenue which shall maintain a record thereof and shall include such rebates and exemptions in the annual tax exemption report prepared under authority of R.S. 47:1517. Whenever any such rebate or exemption, or any part thereof, ceases by reason of a violation of the terms of the contract under which it was granted, or for any other cause, the commerce board shall notify the Department of Revenue.
(ii) All rebates of taxation of a political subdivision granted under contracts entered into under authority of this Subsection shall be listed, together with the amount of the rebates, by the commerce board, and a copy of each such listing shall be submitted to the governing authority of each affected political subdivision and to the agency or officer which collects such taxes. The governing authority shall maintain a record thereof. Whenever any such rebate, or any part thereof, ceases by reason of a violation of the terms of the contract under which it was granted, or for any other cause, the commerce board shall notify any affected governing authority and the tax collecting officer or agency.
(2)(a) Applications for contracts of rebate or exemption shall be addressed to the Department of Economic Development. A copy of any application requesting rebate of taxes of any political subdivision shall be transmitted by the applicant to the governing authority of each political subdivision levying any such taxes. The Department of Economic Development shall review the application to determine whether the requirements for a contract have been satisfied and shall determine whether rebates or exemptions should be provided in a contract or contracts. The Department of Revenue shall aid the Department of Economic Development in determining whether the tax information furnished by the applicant is true and correct.
(b) The commerce board shall review any recommendations for rebates or exemptions made by the Department of Economic Development. The commerce board shall conduct public hearings on any application for rebate or exemption upon such terms and under such procedures as it shall promulgate by regulation. Notice of such hearing shall be given to the governing authority of any political subdivision which levies taxes for which rebate is requested. The commerce board shall forward its recommendations, together with all supporting documents and the recommendations of the Department of Economic Development, to the governor.
(c) The Department of Economic Development and the commerce board may make and promulgate such rules and regulations consistent with the provisions of this Subsection as are necessary to carry out the provisions of this Subsection.
(d) The commerce board, based upon recommendations by the Department of Economic Development and the Department of Revenue, shall establish by rule criteria for granting rebates or exemptions pursuant to this Subsection. Such criteria shall be established so as to assure that rebates and exemptions are granted to concerns which are viable and which will contribute to the improved economic health of the zone and the expanded capability of the concern requesting the rebate or exemption and of other concerns in the district. Such criteria may provide for consideration of any and all factors which are relevant to business viability, economic health of the zone, and the continued and expanded operations of the applicant, including but not limited to the following:
(i) The benefits to the state, the city-parish, and the zone in terms of continued employment opportunities, expenditures for goods and services, contributions to the revenue base of the state and local governments, and the creation of new and additional permanent jobs.
(ii) Competitive conditions existing in other states or in foreign nations.
(iii) The economic viability of the applicant, and the effect of any tax rebates or exemptions on economic viability.
(iv) The effects on the applicant of temporary supply and demand conditions.
(v) The effect of casualties or natural disasters.
(vi) The effects of United States and foreign trade policies.
(vii) The effect of federal laws and regulations bearing on the economic viability within the state of the applicant.
(viii) The competitive effect of like or similar rebates or exemptions granted to other applicants.
(3)(a) Whenever the governor finds that a concern satisfies the requirements of this Subsection and the criteria established by rule, he shall advise the commerce board that it may enter into a contract with such concern providing for the tax rebates or tax exemptions as provided in this Paragraph.
(b) Exemptions from taxation may be granted for any of the following:
(i) The state corporation franchise tax.
(ii) The state corporation income tax.
(iii) Any other taxes imposed directly by the state on the applicant.
(c) Rebates for taxes paid may be granted for any of the following:
(i) Sales and use taxes imposed by the state or any political subdivision on machinery and equipment to be used by the applicant, on materials and building supplies, whether purchased directly or through a contractor, to be used in repair, reconstruction, modification, or construction of plants or facilities, and on materials and supplies necessary for or used in the manufacture or production of the product of the applicant.
(ii) Sales and use taxes imposed by the state or by any political subdivision on any other goods and services used or consumed by the applicant.
(d)(i) The total annual amount of state tax rebates or exemptions granted to a concern under the provisions of Subparagraphs (b) and (c) of this Paragraph for any fiscal year shall not exceed thirty percent of the liability for corporate franchise, income, and state sales and use taxes of the concern during the fiscal year preceding the fiscal year for which the rebates or exemptions are granted, or such amount as shall be established by contract.
(ii) The total annual amount of rebates of sales taxes of a political subdivision granted to a concern under the provisions of Subparagraph (c) of this Paragraph for any fiscal year shall not exceed one hundred percent of the liability for sales taxes due to that political subdivision by the concern during the fiscal year preceding the fiscal year for which the rebates are granted, or such amount as shall be established by contract.
(e) No firm, foreign or domestic, subsidiary, contractor, supplier, support service, or co-entity shall be allowed any rebate, exemption, or credit authorized pursuant to this Subsection unless the facility is physically located within the zone.
(4) If Act No. 144 of the 2000 First Extraordinary Session becomes effective, references to the Department of Economic Development in this Subsection shall refer to the division of administration.
B. For purposes of this Section "concern" or "business concern" means any manufacturing, research and development, support, or service business entity whose primary activity is related to information services or research or development or support of such entities and which meets eligibility criteria established by the commerce board. A concern shall be technology-based and innovatively growth-oriented as further defined by the commerce board.
C.(1) The business inducement zone shall include the area within the following boundaries and all parcels of property outside of but adjacent to the following boundaries: beginning at the intersection of Tenth Street and Florida Boulevard, east along Florida Boulevard to its intersection with Airline Highway, then south along Airline Highway to its intersection with Goodwood Boulevard, then west along Goodwood Boulevard to its intersection with Lobdell Avenue, then north along Lobdell Avenue to its intersection with Government Street, then west along Government Street to its intersection with Tenth Street, then north along Tenth Street to its intersection with Florida Boulevard.
(2) The zone shall also include all parcels of property adjacent to: 22nd Street/Plank Road between Florida Boulevard and Jefferson Avenue, North Foster Drive between Florida Boulevard and Gus Young Avenue, Greenwell Springs Road between North Foster Drive and North Lobdell Avenue, and North Lobdell Avenue between Greenwell Springs Road and Florida Boulevard.
D. Notwithstanding any other provision of this Part, no rebate or exemption against any state tax shall be allowed in contracts provided for in this Part.
E. Prior to the granting of a contract of rebate or exemption pursuant to this Chapter, the Joint Legislative Committee on the Budget shall approve such contract.
Acts 2000, No. 35, §1.