HB 217: TAX/AD VALOREM-EXEMPTION: Authorizes an optional property tax exemption for blighted or derelict properties that have been rehabilitated and provides with respect to local redevelopment plans (EN SEE FISC NOTE LF RV See Note) - Louisiana

HB217 Original → HB217 Act 422 · 5 edits

MODERATE

This bill transforms from a draft proposal into an enacted law, formally authorizing parishes to offer property tax exemptions for rehabilitated blighted or derelict properties. It establishes specific definitions for 'derelict property' and mandates that any parish choosing to implement this program must create a formal application process, set rehabilitation standards, and define rules for revoking the exemption. The law also allows parishes to opt out of these requirements if they wish.

Scope change

The bill's scope expanded from a single sponsor's proposal to a multi-sponsor enacted act, and its applicability was refined to allow individual parishes to voluntarily opt out of the new program.

DEFINITION

Added a detailed list of characteristics defining 'derelict property,' including structural unsafety, lack of egress, fire hazards, and danger to public safety.

REQUIREMENT

Required parishes that choose to implement the tax exemption to establish specific administrative procedures, including application processes, rehabilitation standards, and criteria for approval or revocation.

ELIGIBILITY

Introduced new eligibility restrictions, such as limiting exemptions to properties adjacent to commercial structures and capping the number of unimproved land tracts eligible per owner.

TIMELINE

Changed the effective date language from a conditional future date to a specific start date of January 1, 2027, while adding a provision allowing parishes to opt out of the program.

ENFORCEMENT

Authorized the Louisiana Tax Commission to create rules necessary to implement the new exemption provisions.

HB217 Enrolled → HB217 Original · 5 edits

MODERATE

The bill was stripped of all its substantive content, including the sponsor list, the new property tax exemption law, and the constitutional amendment required to make it effective. It now contains only the original header and a brief digest, meaning no new tax exemptions or legal changes will occur.

Scope change

The bill's scope was completely removed; it no longer authorizes any property tax exemptions or defines blighted/derelict properties.

ELIGIBILITY

Removed the authorization for parishes to offer tax exemptions for rehabilitated blighted or derelict properties.

DEFINITION

Deleted the legal definitions for 'blighted property' and 'derelict property' that established criteria for the exemption.

REQUIREMENT

Eliminated requirements for parishes to establish application processes, rehabilitation standards, and approval criteria for the exemption.

ENFORCEMENT

Removed provisions allowing the Louisiana Tax Commission to create rules and the option for jurisdictions to opt out of the program.

TIMELINE

Deleted the effective date and the condition linking the bill's success to a future statewide constitutional election.

HB217 Reengrossed → HB217 Enrolled · 4 edits · May 20, 2026

MODERATE

The bill was finalized into its enrolled version, adding co-sponsoring Senators and renumbering sections to accommodate new content. The substantive policy changes include redefining 'blighted property' to require a public nuisance declaration and 'derelict property' to include specific safety hazards. Crucially, the bill now allows parishes to opt out of tax limitations if they are in redevelopment zones using public financing, and it introduces new provisions for designating public entities to manage redevelopment funds.

Scope change

The bill's scope expanded to include specific opt-out provisions for parishes in redevelopment areas and added mechanisms for designating public entities to administer redevelopment plans.

DEFINITION

Added a new definition for 'derelict property' listing specific structural and safety hazards, while refining the definition of 'blighted property' to require a public nuisance declaration.

ELIGIBILITY

Added an opt-out provision allowing parishes or municipalities to exclude properties in redevelopment zones from tax limitations if those zones use public financing mechanisms.

REQUIREMENT

Introduced new requirements for designating public entities, nonprofits, or development organizations to support the creation and administration of redevelopment plans.

TECHNICAL

Updated the list of co-sponsors to include Senators and renumbered sections to integrate the new opt-out and entity designation clauses.

HB217 Engrossed → HB217 Reengrossed · 3 edits · May 19, 2026

MINOR

The bill was reengrossed to expand the list of sponsors and add a new provision allowing parishes and municipalities to opt out of the property tax exemption for specific properties. This change clarifies that the exemption does not apply to properties located in redevelopment areas or those subject to plans using tax revenues for public financing and site preparation.

Scope change

The bill's scope was modified to include an opt-out mechanism for local governments regarding properties in redevelopment zones.

ELIGIBILITY

Added a new clause allowing parishes and municipalities to opt out of the property tax exemption for properties located in designated redevelopment areas or subject to redevelopment plans involving public financing.

TECHNICAL

Added a new clause allowing governing authorities to designate public or nonprofit entities to assist with redevelopment plans and financing mechanisms.

SCOPE

Updated the list of bill sponsors to include additional representatives.

TAX/AD VALOREM-EXEMPTION: Authorizes an optional property tax exemption for blighted or derelict properties that have been rehabilitated and provides with respect to local redevelopment plans (EN SEE FISC NOTE LF RV See Note)

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