LED proposes streamlined ITEP application, single annual report; committee seeks local feedback

Louisiana Economic Development on Wednesday presented proposed rule changes to the Industrial Tax Exemption Program to the Board of Commerce and Industry Rules Subcommittee, saying the goal is to simplify a process industry and local officials have described as cumbersome.

Robin Porter, executive counsel for LED, told the committee the Constitution (Article VII, Section 21) gives the board authority over ad valorem tax exemptions and that LED intends to maintain core provisions — an 80% tax exemption for an initial five-year contract (with a five-year renewal option) and a 93% exemption for qualifying megaprojects — while reducing administrative burden. "We propose to reduce from a 15-step process to a 9-step process," Porter said, describing a hybrid "project application" that combines advance notice with the front-end application and consolidates multiple annual and phase filings into one Annual Project Property Report (APPR).

The APPR would be due March 31 each year and would replace phased applications, affidavits of final cost and other recurring forms; LED said the APPR is an attestation of property placed in service and will align filing deadlines with other taxing…