Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part V - Ad Valorem Taxation › Chapter 1 - Constitutional and Statutory Guides to Property Taxation › Section V-103 - Exempt Property

Current through Register Vol. 50, No. 6, June 20, 2024
A. In
				addition to the homestead exemption provided for in
				Section
				20 of Article VII of the
				constitution, the following property and no other shall be exempt from ad
				valorem taxation:
1. public lands; other
				public property used for public purposes;
2. property of a nonprofit corporation or
				association organized and operated exclusively for religious, dedicated places
				of burial, charitable, health, welfare, fraternal, or educational purposes, no
				part of the net earnings of which inure to the benefit of any private
				shareholder or member and which is declared to be exempt from federal or state
				income tax:
a. medical equipment leased for a
				term exceeding five years to such a nonprofit corporation or association which
				owns or operates a small, rural hospital and which uses the equipment solely
				for health care purposes at the hospital, provided that the property shall be
				exempt only during the term of the lease to such corporation or association,
				and further provided that "small, rural hospital" shall mean a hospital which
				meets all of the following criteria:
i. it
				has less than 50 Medicare-licensed acute care beds; and
ii. it is located in a municipality with a
				population of less than 10,000 which has been classified as an area with a
				shortage of health manpower by the United States Health Service;
3. property of a bona
				fide labor organization representing its members or affiliates in collective
				bargaining efforts; and
4. property
				of an organization such as a lodge or club organized for charitable and
				fraternal purposes and practicing the same, and property of a nonprofit
				corporation devoted to promoting trade, travel, and commerce, and also property
				of a trade, business, industry or professional society or association, if that
				property is owned by a nonprofit corporation or association.
a. The exemption should be allowed only if it
				is determined that the requesting organization has met all of the
				constitutional requirements for exemption. Assessors may request the following
				information from the taxpayer in order to make a determination of exemption:
i. completed LTC Form TC-80, Application for
				Exemption-Real Estate Taxes;
ii.
				certified copy of the articles of incorporation of the organization;
iii. certified copy of the by-laws of the
				organization;
iv. copy of the
				Internal Revenue Service letter granting the organization tax-exempt
				status;
v. audited financial
				statements for the preceding three years, along with an affidavit from the
				organization's CPA and/or treasurer that the financial statements are true and
				correct;
vi. federal tax returns
				filed for the preceding three years; and
vii. affidavit from the president or other
				duly appointed officer stating:
(a). the price
				paid for each share of stock issued by the organization for the past five
				years;
(b). whether or not over the
				previous five years any dividends have been paid or interest accrued on the
				value of the stock of the organization; and
(c). whether or not any part of the net
				earnings of the organization inure to the benefit of any member of the
				organization;
NOTE: See Louisiana Constitution of 1974, Article VII,
				  Section
				  21 B, for specific conditions of
				  authorization.
b. none of the property listed in
				§103.A 2, 3, and 4 shall
				be exempt if owned, operated, leased or used for commercial purposes unrelated
				to the exempt purposes of the corporation or association;
5. cash on hand or deposit;
6. stocks and bonds, except bank stocks, the
				tax on which shall be paid by the banking institution;
7. obligations secured by mortgage on
				property located in Louisiana and the notes or other evidence
				thereof;
8. loans by life insurance
				companies to policyholders, if secured solely by their policies;
9. the legal reserve of domestic life
				insurance companies;
10. loans by a
				homestead or building and loan association to its members, if secured solely by
				stock of the association;
11. debts
				due for merchandise or other articles of commerce or for services
				rendered;
12. obligations of the
				state or its political subdivisions;
13. personal property used in the home or on
				loan in a public place;
14.
				irrevocably dedicated places of burial held by individuals for purposes of
				burial of themselves or members of their families;
15. agricultural products while owned by the
				producer, agricultural machinery and other implements used exclusively for
				agricultural purposes (including crop dusting aircraft), animals on the farm,
				and property belonging to an agricultural fair association (also see
				R.S.
				47:1707);
16. property used for cultural, Mardi Gras
				carnival, or civic activities and not operated for profit to the
				owners;
17. rights-of-way granted
				to the state Department of Highways (DOTD);
18. boats using gasoline as motor
				fuel;
19. commercial vessels used
				for gathering seafood for human consumption;
20. ships and oceangoing tugs, towboats and
				barges engaged in international trade and domiciled in Louisiana ports: a.
				however, this exemption shall not apply to harbor, wharf, shed, and other port
				dues or to any vessel operated in the coastal trade of the states of the United
				States;
21. materials, boiler
				fuels, and energy sources used by public utilities to fuel the generation of
				electricity;
22. all incorporeal
				movables of any kind or nature whatsoever, except public service properties,
				bank stocks, and credit assessments on premiums written in Louisiana by
				insurance companies and loan and finance companies. (See Louisiana Civil Code
				of 1870, as amended, and
				R.S.
				47:1709);
23. raw materials, goods, commodities,
				articles and personal property imported into this state from outside the states
				of the United States or, held in storage while in transit through this state
				which are moving in interstate commerce;
NOTE: See Louisiana Constitution, Article VII,
				  Section
				  21 D; and,
				  R.S.
				  47:1951.1,
				  R.S.
				  47:1951.2 and
				  R.S.
				  47:1951.3 for specific conditions of
				  authorization. Property described in
				  §103.A 23, whether or not
				  entitled to exemption, shall be reported to the proper taxing authorities on
				  the forms required by law.
24. motor vehicles used on the public
				highways of this state, from state, parish, municipal, and special ad valorem
				taxes;
25. new manufacturing
				establishments and additions to existing manufacturing establishments to the
				extent tax exempt by virtue of an approved contract with the State Board of
				Commerce and Industry, as authorized by Article VII,
				Section
				21.F of the
				Louisiana Constitution of 1974. Parish tax assessors shall give retroactive
				effect to a fully approved ITEP contract or renewal, consistent with the terms
				of the ITEP contract and the rules and regulations of the State Board of
				Commerce and Industry, and parish tax assessors shall process change order
				requests and/or approve refund request applications in order to give
				retroactive effect to such an ITEP contract or refund;
26. coal or lignite stockpiled in Louisiana
				for use in Louisiana for industrial or manufacturing purposes or for boiler
				fuel, gasification, feedstock, or process purposes;
27. value of enhancements to certain
				structures located in downtown, historic, or economic development districts to
				be granted a limited exemption by the State Board of Commerce and Industry, if
				approved by the governor and the local governing authority, as authorized by
				Article VII,
				Section
				21.H of the
				Louisiana Constitution of 1974;
28.
				goods held in inventory by distribution centers, to be granted tax exemptions
				by the parish economic development or governing authority, with the approval of
				each affected tax recipient body in the parish, as authorized by Article VII,
				Section
				21.I of the
				Louisiana Constitution of 1974.