TAX/AD VALOREM TAX: Provides for an optional exemption of business inventory from ad valorem taxes and to authorize the reduction of the fair market value percentage of business inventory under certain circumstances (EN SEE FISC NOTE GF EX See Note)
HB 365 allows businesses to optionally exclude inventory from ad valorem taxes (property taxes based on value) and permits reducing the taxable value percentage of business inventory under specific conditions. It directly affects businesses, particularly agricultural cooperatives (replacing "farms" in the original text) and excluding agricultural inputs used in food/fiber production. Key provisions include an optional exemption for business inventory and authorization to lower the fair market value percentage applied to inventory for certain taxpayers. The bill passed committee favorably and is now in its third reading stage. This is a tax relief measure targeting business property taxation, not a procedural or commemorative bill.
Bill status
signed
all 5 stages cleared
Introduction
Apr 2025
Committee Review
Jun 2025
House Passage
May 2025
Senate Passage
Jun 2025
Signed into Law
Jun 2025
Introduced Apr 3, 2025
Signed Jun 20, 2025
Maddy AI version diff · 3 comparisons
What changed between versions
HB365 Original
→
HB365 Act
·
4 edits
MODERATE
This bill was finalized into an Act (No. 357) and expanded the list of sponsors to include Representative Romero. The core policy changes update the timeline for tax exemptions, increasing the start date for certain payments from 2028 to 2027 and adjusting the reference tax year from 2025 to 2026. It also clarifies that partial exemptions (reducing the fair market value percentage) do not qualify for state funding payments, whereas full exemptions do.
Scope change
The bill's scope regarding funding eligibility was narrowed; only parishes electing a full 100% exemption are now eligible for state payments, while those choosing a partial exemption are excluded.
TIMELINE
The deadline for parishes to elect a full exemption was moved from July 1, 2028, to July 1, 2027, and the applicable tax year for payment calculations was updated from 2025 to 2026.
FISCAL
The maximum payment cap for parishes phasing in a full exemption over five years was reduced from $10 million to $5 million.
ELIGIBILITY
A new rule was added stating that parishes electing to partially exempt inventory by reducing the fair market value percentage are not eligible for any state funding payments.
TECHNICAL
The bill text was updated to reflect its status as an Enrolled Act with a new Act number (357) and additional sponsors.
Floor votes · Senate Jun 8, 2025 · House May 6, 2025
How they voted
34–0
Passed · 3 other
Total votes 37
Jun 8, 2025
D
Democratic11
81% Yea
R
Republican26
96% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
43
Key actions
11
Committee
12
Jun 12, 2025
Lower · Passed
Notice of Senate adoption of Conference Committee Report.
lower
Jun 12, 2025
Upper · Passed
Conference Committee Report read; adopted by a vote of 36 yeas and 0 nays.
upper
Jun 12, 2025
Upper · Passed
Notice House adopted the Conference Committee Report.
upper
Jun 12, 2025
Lower · Passed
Conference Committee Report read, roll called, yeas 98, nays 0. The Conference Committee Report was adopted.
lower
Jun 12, 2025
Lower · Passed
Conference Committee report received. Lies over under the rules.
lower
Jun 11, 2025
Upper · Passed
Notice House Conference Committee members appointed.
upper
Jun 10, 2025
Upper · Passed
Senate conference committee members appointed: Cathey, Foil, and Reese.
upper
Jun 8, 2025
Upper · Passed
Senate floor amendments read and adopted. Read by title, passed by a vote of 36 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.
upper
May 20, 2025
Committee
Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.
upper
May 19, 2025
Upper · Passed
Reported with amendments.
upper
May 6, 2025
Lower · Passed
Read third time by title, roll called on final passage, yeas 93, nays 0. Finally passed, title adopted, ordered to the Senate.
lower
Apr 15, 2025
Lower · Passed
Reported favorably (13-0).
lower
Apr 14, 2025
Committee
Read by title, under the rules, referred to the Committee on Ways and Means.
lower
Apr 3, 2025
Committee
Under the rules, provisionally referred to the Committee on Ways and Means.
lower
1 primary · 1 co-sponsor
Sponsors
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