B. SPECIFIC PROVISIONS (STATE) 1. PROPERTY TAXES (a) Uniformity and valuation.-(1) All taxes shall be uniform and no property shall be assessed for more than its actual cash value: * ** * and all taxes shall be uniform upon the same class of subjects throughout the territorial limits of the authority levying the tax, and shall be levied and collected for public purposes only. No property shall be assessed for more than its actual cash value, ascertained as directed by law, and all taxpayers shall have the right of testing the correctness of their assessments before the courts at the domicile of the assessing authority. The valuation and classification fixed for State purposes shall be the valuation and classification for local purposes; but the taxing authorities of the local sub-division may adopt a different percentage of such valuation for purposes of local taxation. (art. X, sec. 1, Amd. 1934). (2) Real estate shall be valued at actual cash value: * * * All real estate, exempt as well as taxable, shall be valued at actual cash value, listed on the assesment rolls and submitted to the Louisiana Tax Commission (art. X, sec. 12). (b) School taxes.-A State educational system is provided for (art. XII): (1) Taxes specifically authorized for this purpose are a two and one-half ad valorem state wide property tax. A prescribed residue of the state severance tax fund; the proceeds of particular taxes now or hereafter levied; proceeds of a 1/2-cent gallonage tax on motor fuels and the legislature shall provide by other tax levies, or otherwise a minimum state school fund of $10,000,000. Apportionment of school funds are to be made to the parish schools (art. XII, sec. 14; amended 1934). (2) Special provisions are enacted as to a State university and State colleges (art. XII, sec. 17). NOTE. The provisions with respect to taxes for State. parish, and municipal schools as to special taxes, exceptions, rates, etc., are so related each to the other, that it will be necessary to consider article XII of the constitution in its entirety, as the same is now amended, in order to have a full understanding of taxation for educational purposes. (c) Highway and bridge taxes.—(1) Detailed provisions are made for a highway and bridge fund. Funds are provided largely from specific taxes. (2) An Amendment (1936) authorizes a 30-million-dollar bond issue and allocates certain taxes for the retirement thereof, and also apportions the distribution of the fund (art. VI, sec. 22; see also License Tax, par. B-5-(2)). (d) Corporations and corporate property.—(1) Banks and banking: Banks organized under the Federal Reserve Act and others domiciled outside the State may pay a franchise tax in lieu of taxes other than a tax on real estate (art. X. sec. 9; see par. B-4-b). (2) Rolling Stock owned outside the State: Rolling stock operated within the state but owned elsewhere shall be taxed for state purposes only: Rolling stock operated in this State, the owners of which have no domicile therein, shall be assessed by the Louisiana Tax Commission, and shall be taxed for State purposes only, at a rate not to exceed forty mills on the dollar of assessed value (art. X, sec. 16). (3) Creation of corporations: General laws are required to be enacted for the creation and regulation of corporations: The Legislature shall enact general laws for the creation and regulation of corporations and for the prohibition of monopolies; and shall provide also for the protection of the public, and of the individual stockholders (art. XIII, ⚫ sec. 5). (e) Confederate veteranss pensions.-A tax levy of three-fourths of 1 mill on the dollar is provided on all taxable property in the State, to provide for pensions to Confederate veterans and their widows (art. XVIII, sec. 3). (f) Levee taxes.-An annual State tax may be levied exclusively for maintenance and repair of levees: A levee system, as now organized, or as hereafter created, shall be maintained and an annual tax not to exceed one-half mill on the dollar may be levied on all taxable property throughout the State, to be applied exclusively to the maintenance and repair of levees (art. XVI, sec. 1). (g) Drainage district taxes.-Creation of drainage districts is authorized for purposes of reclamation. The imposition of taxes. and forced contributions is also authorized. Authority to delegate certain powers to agencies is given (art. XV, sec. 1). (h) Rate limitations.-The rate of State taxation on property shall not exceed 534 mills in any one year: The rate of State taxation on property for all purposes shall not exceed,. in any one year, five and one-quarter mills on the dollar of its assessed value; provided, the Legislature may, by a vote of two-thirds of the members elected to each house, increase such rate to not more than five and three-quarter mills on the dollar (art. X, sec. 3). (i) State severance tax on natural resources.—(1) A severance tax is authorized to be levied on the natural resources of the State, but the tax may not be imposed by any political subdivisions: Taxes may be levied on natural resources severed from the soil or water, to be paid proportionately by the owners thereof at the time of severance.. Such natural resources may be classified for the purpose of taxation and such taxes predicated upon either the quantity or value of the product at the time and place where it is severed. No severance tax shall be levied by any parish or other local subdivision of the State. No further or additional tax or license shall be levied or imposed upon oil, gas, or sulphur leases or rights, nor shall any additional value be added to the assessment of land, by reason of the presence of oil, gas, or sulphur therein or their production therefrom. * * ** * * * The Legislature shall provide for the distribution of the funds allocated to the parishes under this provision among the governing authorities of such parishes as have jurisdiction over the territory from within which such resources are severed and tax collected (art. X, sec. 21; amended). (2) A severance tax in lieu of other taxes, is authorized for the purpose of encouraging reforestation. * For the purpose of encouraging the reforestation of denuded lands, contracts fixing the assessed valuation of the specific lands for the duration of the agreements, and fixing a total severance tax based on the value of forest products when severed, three-fourths of which shall go to the parish where they are severed, and which severance tax, for a period not to exceed fifty years from the date of such contract, shall be in lieu of all other taxes on said forest products, are hereby authorized under such regulations, terms, and conditions as may be prescribed by law; and the regulations, terms, and conditions of such contracts as may be authorized may be made retroactive by the consent of the parties as respects the limit of taxation, on contracts. theretofore entered into * * * (art. X, sec. 1, amended). (j) Exemptions. The following property, and no other, shall be exempt from tax ation: All public property; property for religious worship; property of various charitable, fraternal, athletic organizations not used for profit; schools and colleges; cash and certain securities; obligations of the state and subdivisions; certain debts; household property to $1,000 in value; property of the National Guard; legal reserves of life insurance companies organized under State laws; certain agricultural products and property; certain property kept in a public hall; property of certain enterprises conducted for public welfare and not operated for profit of the owners; certain ships and vessels. For limited periods and under prescribed limitations, capital stock and franchises of corporations within the State operating a combined system of irrigation, navigation, and hydro-electric power; pipe lines and pumping plants for natural gas; manufacturing or commercial industries on the New Orleans Navigation Canal. There are also exempted from State, parish, and special taxes, all motor vehicles used on the public highways, and certain homestead exemptions. The last two exemptions are coupled with and dependent upon prescribed conditions. A State Board of Commerce is authorized who may have power to grant exemptions to the owners of new industries or for additions to industries already existing in the State. A similar provision is made with respect to exemptions from local taxes by the several taxing authorities of political subdivisions. An additional paragraph is added exempting from taxation certain bridges across the Mississippi River, hereafter to be built (art. X, secs. 4 and 22, amended 1936; and art. XI, sec. 1 (homesteads)). 2. INCOME TAX * * * Equal and uniform taxes may be levied upon net incomes, and such taxes may be graduated according to the amount of the net income. Public officials shall not be exempted. Reasonable exemptions may be (art. X, sec. 1, amended 1934). allowed 3. DEATH TAXES Taxes upon inheritances, legacies, and donations or gifts made in contemplation of death, may be graduated, classified, or progressive; provided such taxes shall not exceed three per cent as to ascendants, descendants, or surviving spouse; ten per cent as to collateral heirs; or fifteen per cent as to others; and exemptions to a reasonable amount may be allowed. Donations and legacies to charitable, religious, or educational institutions located within the State shall be exempt from such tax (art. X, sec. 7). 4. FRANCHISE TAXES (a) Franchise taxes are imposed by the State and subdivisions. License and franchises are not always clearly distinguished. (b) Special taxes are imposed on banks and banking: Each bank organized under Section 25 (a) of the Federal Reserve Act and each banking association, banking corporation, or bank, doing business in this State and domiciled outside thereof, which may in its own name, or in the name of an agent or representative, engage in this State in the business of lending money or dealing in bills of exchange exclusively, shall pay, annually, in lieu of all other taxes, except on its real estate, five hundred dollars license and five per cent on the gross amount of interest earned, including discount, one-half thereof to go to the State and the other half to the municipality wherein it has its principal office in this State (art. X, sec. 9). 5. LICENSE TAXES License taxes are imposed by the State and subdivisions. (1) The general provisions and exemptions are as follows: License taxes may be levied on such classes of persons, associations of persons, and corporations pursuing any trade, business, occupation, vocation, or profession, as the Legislature may deem proper, except clerks, laborers, ministers of religion, school teachers, graduated trained nurses, those engaged in mechanical, agricultural, or horticultural pursuits, or in operating saw mills. Such license taxes may be classified, graduated, or progressive. No political supdivision shall impose a greater license tax than is imposed for State purposes, provided that this restriction shall not apply to dealers in malt, vinous, distilled, alcoholic, spirituous, or intoxicating liquors; but when an income tax is levied by the State, in lieu of State license taxes, this shall not prohibit the levy by the political subdivisions of the State of such license taxes as the Legislature may authorize. Those who pay municipal license taxes equal in amount to such taxes levied by the parochial authorities shall be exempt from such parochial license taxes (art. X, sec. 8, amended 1934). (2) Licenses for highway and bridge purposes: Taxes for this purpose are a graded license tax on motor vehicles according to their use, based upon horsepower, carrying capacity, or weight (based upon any or all of these measures), and upon all substances used for generation of motor power. The parishes of the State are relieved from all charges for the construction and maintenance of State highways. If necessary to produce revenue sufficient to retire highway bonds the legislature is authorized to levy a tax upon any commodity, etc., which may be sold or used to generate or supply motor fuel or other power for transportation, to levy such tax or license, or both, as may be necessary * * * (art. VI, sec. 22, amended 1934, 1936). 6. POLL TAXES A poll tax is imposed for aid of public schools of the parish where collected (art. VIII, sec. 2). C. SPECIFIC PROVISIONS (PARISHES, COUNTIES) 1. PROPERTY TAXES (a) Parochial and municipal corporations and public boards may exercise the power of taxation under legislative authority, for parish, municipal, and local purposes: Parochial and municipal corporations and public boards may exercise the power of taxation, subject to such limitations as may be elsewhere provided in this Constitution, under authority granted to them by the Legislature for parish, municipal, and local purposes, strictly public in their nature. The provisions of this section shall not apply to, nor affect, similar grants to such political subdivisions under other sections of this Constitution which are selfoperative (art. X, sec. 5). (b) School Taxes.-(See note, par. B-1-b.) (1) An annual ad valorem parish-wide tax for school purposes is required to be levied on all property subject to taxation. (See next following paragraph.) (2) Special parish school taxes are imposed on 100 percent of the assessed valuation of property for State taxation purposes (art. XII, sec. 15). (c) Special taxes for public improvements.-For works of permanent public improvement any political subdivision may levy special taxes in excess of the constitutional limitations (art. XIV, secs. 8 and 11) and also for additional support to public schools. Additional rates are fixed and special provisions enacted with respect to Sabine and Caddo Parishes and the city of New Orleans (art. X, sec. 10, amended 1936). (d) Special taxes in aid of public enterprises.--Parishes and municipalities may be authorized to levy taxes in aid of railway enterprises, water-transportation lines, waterworks, or electric-power plants, at a rate not to exceed 5 mills per annum: The Legislature shall have the power to enact general laws authorizing the parochial, ward, and municipal authorities of the State by a vote of the majority of the property taxpayers in number entitled to vote under the provisions of this Constitution, and, in value, to levy special taxes in aid of railway enterprises, water transportation lines, waterworks, or electric light or power plants; provided, that such tax shall not exceed the rate of five mills per annum nor extend for a longer period than ten years; and provided further, that no taxpayer shall be permitted to vote at such election unless he shall have been assessed for property the year previous in the parish, ward, or municipality to be affected (art. XIV, sec. 19). (e) Special taxes for streets, sewers, etc.-The legislature may confer upon municipalities and other political subdivisions authority to levy local or special assessments on real property for road, sidewalk, sewers, and similar works of public improvement: Nothing in this Constitution shall prohibit the Legislature from conferring upon municipalities and other subdivisions the authority to levy and collect local or special assessments on real property, for the purpose of constructing, paving, surfacing, or otherwise improving roads, streets, sidewalks, alleys, sewers, or other similar works of public improvement, in pursuance of methods and regulations prescribed by the Legislature (art. X, sec. 13). (f) Taxes for payment of certain bonded debts.-The taxing officials may be authorized to levy taxes for payment of the bonded debt of the political subdivisions of the State: The Legislature may authorize the taxing officers of the State to impose and collect taxes required for the payment of the principal or interest of any bonded debt of any parish, municipal corporation, road, subroad, drainage, subdrainage, irrigation district, or school district, and may authorize the taxing officers of the parish to impose and collect taxes required for the payment of the principal and interest of any bonded debt of any school district, road, sub-road, sewerage, or drainage, sub-drainage, or irrigation district in such parish in the event of any default in the imposition or collection thereof (art. XIV, sec. 14, (j)). (g) Limitation of rate for parochial purposes.— No parish, parish of Orleans excepted, shall levy for parochial purposes, on property located wholly within incorporated cities and towns of the State, having a population in excess of one thousand (1,000) inhabitants, according to the last census, which provide and maintain systems of street paving, any general parochial tax in excess of one-half the levy for general parochial purposes; provided, that this section shall not apply in a parish which had a general unbonded indebtedness on January 1st, 1921, until said debt has been paid or funded into bonds (art. XIV, sec. 8). (h) Limitation of rate for all purposes.— No parish tax, the parish of Orleans excepted, for all purposes whatsoever, shall exceed in any one year four mills on the dollar of assessed valuation. This limitation shall not apply to nor include any other tax levy elsewhere 91655-38-5 |