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Louisiana voters OK 5, reject 2 constitutional changes

Kevin McGILL | Hagadone News Network | UPDATED 4 years AGO
by Kevin McGILL
| November 4, 2020 12:09 PM

NEW ORLEANS (AP) — A constitutional amendment that could have let manufacturers avoid established local property taxes by negotiating other payments with local governments has been rejected by Louisiana voters.

Backers touted the amendment as an economic development tool. Opponents said it could lead to unwise agreements that would end up costing local governments needed revenue for schools and services. The Greater New Orleans Housing Alliance, an advocacy group, cast the amendment as a potential tax break for wealthy property owners “who are already underpaying their fare share of taxes.”

Still, according to an analysis by the nonpartisan Public Affairs Research Council, the amendment was supported by some groups representing taxing bodies, including the Louisiana School Boards Association and the Police Jury Association.

The argument from supporters was it could get those taxing bodies earlier payments than they might ordinarily get, given that new manufacturers, or those that expand existing facilities, often are able to take advantage of the state Industrial Tax Exemption Program, exempting them from property taxes for as much as 10 years.

Despite the backing from the politically influential groups, the amendment failed with support from only about 37 % of those voting.

The first constitutional change listed on the ballot passed easily. Voters were asked whether to approve language declaring “a right to abortion and the funding of abortion shall not be found in the Louisiana Constitution.” Analysts said passage would have little immediate effect. However, were the U.S. Supreme Court to overturn the landmark Roe v. Wade decision on abortion rights, the amendment would ensure against any state judge ruling that the Louisiana Constitution can be read as granting abortion rights.

Other amendments approved include one allowing a state fund usually tapped to cover unexpected budget shortfalls to also be used for spending related to federally declared disasters. Still another expands the availability of a property tax break available to some homeowners over age 65 and the disabled.

Previously, people could apply to “freeze” their home property tax assessment against future increases if they are 65 or older; a disabled veteran; the surviving spouses of a military member killed in action; or a totally disabled person. But to qualify, their annual income can be no more than $77,030. The amendment passed Tuesday raises that threshold to $100,000.

Another amendment approved requires establishment of a trust fund to hold unclaimed property turned over to the state when rightful owners cannot be found. Still another, agreed upon by state tax assessors and the oil and gas industry, changes the way property taxes can be assessed on oil and gas wells. Currently, according to a PAR analysis, property taxes can be assessed on oil and gas wells, but without considering the income generated by what they produce. The amendment removes that prohibition.

Defeated was an amendment requiring the Legislature to develop a procedure for limiting growth in the state expenditures to a maximum of 5% a year.

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Find AP’s full election coverage at https://apnews.com/hub/election-2020.

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