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House adopts conference report to let parishes opt out of inventory (ad valorem) tax; constitutional amendment sets ballot date and identifies stabilization-fun
Summary
Lawmakers approved a conference committee report to allow parishes the option to repeal the inventory portion of ad valorem (property) tax, provide lump-sum payments from the Revenue Stabilization Trust Fund and place a companion constitutional amendment on the April 2027 ballot.
The House adopted the conference committee report on changes to ad valorem taxation that would permit parishes to eliminate the inventory tax on a local option basis. The statute and the companion constitutional amendment together create a framework: parishes may opt to retain the inventory tax, immediately remove it in exchange for a lump-sum payment, or phase the elimination over up to five years with corresponding payments.
Representative Boyer (Representative) said the statutory conference report removes the inventory tax burden for businesses in jurisdictions that elect to do so and gives parishes flexibility. The companion constitutional amendment clarifies that lump-sum payments to parishes for inventory tax removal would come from the Revenue Stabilization Trust Fund and moves the ballot date for the amendment to April 2027.
Members asked whether certain categories — for example, watercraft or barges — would be affected; Boyer said language that raised concerns had been removed from the bill in conference at the request of assessors and affected parishes. Multiple members emphasized the change is optional: parishes may retain the inventory tax if they choose.
The House adopted the conference committee report and the constitutional amendment companion after debate; conferees said the plan is intended to remove what supporters called a burdensome tax while allowing local discretion and providing state-supported payments to offset parish revenue impacts if they choose elimination.
Why it matters: The inventory tax affects local business inventory holdings and local revenue streams. The legislative package offers a state-funded option for parishes that want to accelerate repeal and compensation but preserves local choice and ties the payments explicitly to the Revenue Stabilization Trust Fund.
What happens next: The constitutional amendment will appear on an April 2027 ballot (as amended in conference) for voter approval. If voters approve and a parish chooses immediate repeal, the Revenue Stabilization Trust Fund will supply the identified payments to offset the lost local inventory levy revenue.
