§ 33:9038.78 — Cooperative economic development; certain municipalities

Louisiana § 33:9038.78

• Jurisdiction: Louisiana
• Title 33: Municipalities and Parishes

Text

§9038.78. Cooperative economic development; certain municipalities
A. A municipality with a population of between one thousand five hundred
twenty-five and one thousand six hundred as established by the most recent federal
decennial census may create a taxing district as provided in this Section. Any such
taxing district is a political subdivision of the state.
B. The ordinance creating the district shall establish the boundaries of the
district.
C. Any such district shall be created to provide for cooperative economic
development among the municipality, the parish, the owners of property in the
district, the district, and the state, in order to provide for the redevelopment of and
dramatic improvement to the blighted property within the area of the district into a
conference-style hotel and related facilities.
D.(1) The ordinance creating the district shall provide for its governing board
subject to the provisions of this Subsection.
(2) A majority of the members of the board shall constitute a quorum for the
transaction of business. The board shall keep minutes of all meetings and shall make
them available for inspection through the board's secretary-treasurer. The minute
books and archives of the district shall be maintained by the board's
secretary-treasurer. The monies, funds, and accounts of the district shall be in the
official custody of the board.
(3) The board shall adopt bylaws and prescribe rules to govern its meetings.
The members of the board shall serve without salary or per diem but shall be entitled
to reimbursement for reasonable, actual, and necessary expenses incurred in the
performance of their duties.
(4) The domicile of the board shall be established by the board at a location
within the district.
(5) The board shall elect from its own members a president, a vice-president,
and a secretary-treasurer, whose duties shall be common to such offices or as may be
provided by bylaws adopted by the district. The board shall hold regular meetings
and may hold special meetings as provided in the bylaws.
E. The district, acting by and through its board, shall be a special taxing
district and shall have and exercise all powers of a political subdivision and special
taxing district necessary or convenient for the carrying out of its objectives and
purposes including but not limited to the following:
(1) To sue and to be sued.
(2) To adopt bylaws, rules, and regulations.
(3) To receive by gift, grant, donation, or otherwise any sum of money,
property, aid, or assistance from the United States, the state of Louisiana, or any
political subdivision thereof, or any person, firm, or corporation.
(4) To enter into contracts, agreements, or cooperative endeavors with the
state and its political subdivisions or political corporations and with any public or
private association, corporation, business entity, or person, including but not limited
to pledge and collateral assignment agreements and tax collection agreements.
(5) To appoint officers, agents, and employees, prescribe their duties, and fix
their compensation.
(6) To acquire by gift, grant, purchase, lease, or otherwise property as
necessary or desirable for carrying out the objectives and purposes of the district and
to mortgage and sell such property.
(7) In its own name and on its own behalf to incur debt and to issue bonds,
notes, certificates, and other evidences of indebtedness. If the district issues bonds
pursuant to this Section, the district shall be deemed and considered to be an issuer
for purposes of R.S. 33:9037 and shall, to the extent not in conflict with this Section,
be subject to the provisions of R.S. 33:9037.
(8) To establish such funds or accounts as necessary for the conduct of the
affairs of the district.
(9) To levy and collect the taxes authorized by this Section.
(10) To enter into one or more agreements to provide for the collection of the
taxes collected within the district and remittance of the taxes to the appropriate
recipients.
F.(1) In order to provide funds for the purposes of the district, the district
may levy and collect within the district a tax upon the occupancy of hotel rooms and
a tax upon the sale of food and beverage not intended for home consumption. The
aggregate tax rate upon the occupancy of hotel rooms within the district shall be at
least equal to the aggregate rate of all taxes upon the occupancy of hotel rooms levied
and collected within the parish where the district is located. The aggregate food and
beverage tax rate within the district shall be at least equal to the aggregate rate of all
taxes on food and beverage levied and collected within the parish where the district
is located.
(2)(a) The word "hotel" as used in this Section shall mean and include any
establishment, both public and private, engaged in the business of furnishing or
providing rooms intended or designed for dwelling, lodging, or sleeping purposes to
transient guests where such establishment consists of two or more guest rooms.
(b) The occupancy tax shall be paid by the person who exercises or is entitled
to occupancy of the hotel room and shall be paid at the time that the rent or fee of
occupancy is paid.
(c) The food and beverage tax shall be paid by the person who pays for the
food and beverages at the point of sale.
(d) The word "person" as used in this Section has the same meaning as
contained in R.S. 47:301(8).
(3) The taxes authorized in this Section shall be imposed by ordinance
adopted by the board without the need of an election.
(4) If there are no hotel occupancy or sales taxes whatsoever generated at the
property and, but for the hotel project to be developed at the property within the
district, there would be no collection of a hotel occupancy tax or food and beverage
tax by any taxing authority within the district, and if the district elects to levy and
collect the taxes authorized in this Section, the levy shall be deemed to supersede and
be in lieu of only other taxes on hotel occupancy and sales within the district that do
not secure bonds that have been authorized, that have not been dedicated by other law
or by proposition approved by electors voting in an election for such purpose, and
that are not based on a per-person basis. Additionally, if during the term of the
district, other taxes on hotel occupancy or sales within the district that are not
available for use for tax increment financing purposes subsequently cease to be
authorized to secure bonds, cease to secure bonds that have been authorized, or cease
to be dedicated by other law or by proposition approved by electors voting in an
election for such purpose and thus become available for the use of the financing
purposes hereunder, the levy pursuant to this Section shall at that time be deemed to
supersede and be in lieu of such other taxes on hotel occupancy or sales within the
district and shall be available for use for the purposes of the district.
G.(1)(a) The district may issue revenue bonds, in one or more series, payable
from an irrevocable pledge and dedication of available non-voter elected, pledged,
or dedicated up to the full amount of hotel occupancy and food and beverage sales
tax increments, in an amount to be determined by the district, to finance or refinance
any project or projects or parts thereof which are consistent with the purposes of the
district. Additionally, without the necessity of issuing revenue bonds, the district
may pledge the tax increments collected under the authority of this Section to any
financing or multiple refinancing of a hotel and related facilities within the district
in furtherance of the purposes of the district. Such financing may include but shall
not be limited to loans, mortgages, the issuance of bonds, or the issuance of
certificates of indebtedness. For each of the designated non-voter elected, pledged,
or dedicated food and beverage and hotel occupancy taxes collected within the
district, a tax increment shall consist of that portion of the aggregate of such tax
revenues collected by the district each year which exceeds the amount of such taxes
that were collected in the year immediately prior to the year in which the district was
established.
(b) Dedication of tax increments to pay the revenue bonds shall not impair
existing obligations of the district and shall not include tax revenues previously
dedicated by the district for a special purpose.
(2) The authority granted to the district pursuant to the provisions of this
Section is subject to the limitations provided in R.S. 33:9038.42.
H. The district shall dissolve and cease to exist one year after the date on
which all loans, bonds, notes, and other evidences of indebtedness of the district,
including refunding bonds, are paid in full as to both principal and interest; however,
the district shall not have an existence of more than forty years from the date on
which a tax authorized pursuant to this Section is first levied by the district.
I. Any ordinance or resolution authorizing bonds or other debt obligations or
the pledge of tax increments collected under the authority of this Section to any
financing authorized by this Section may be published at least once in the official
journal of the parish where the district is located. For thirty days after the date of
publication, any person in interest may contest the legality of the ordinance or
resolution and of any provision therein made for the security and payment of the debt
obligation or the levy and collection of such taxes. After that time, no one shall have
any cause of action to test the regularity, formality, legality, or effectiveness of the
ordinance or resolution and provisions thereof for any cause whatever. Thereafter,
it shall be conclusively presumed that every legal requirement for the levy and
collection of taxes, the issuance of bonds or other debt obligations, or legal
requirement for the levy and collection of taxes, the issuance of bonds or other debt
obligations, or the pledge of tax increment collected, including all things pertaining
to the authorizing thereof, has been complied with. No court shall have authority to
inquire into any of these matters after the thirty-day period after publication.
J. This Section, being necessary for the welfare of the municipality and the
parish and the residents thereof, shall be liberally construed to effect the purposes
thereof.

Legislative History

Acts 2024, No. 569, §1.