This text of Louisiana § 39:523 (Sales tax bonds) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§523. Sales tax bonds
A.A governmental entity that is authorized to levy and collect a sales tax or a
municipality or school board that receives an allocation of a sales tax levied by a parish, may
fund sales tax revenues into bonds and issue the bonds from time to time for the purpose or
purposes for which such tax may be levied, the bonds to be payable from and secured by an
irrevocable pledge and dedication of sales tax revenues subject only to the prior payment of
the costs and expenses of collection and administration of such tax.
B.Any governmental entity, including the city of New Orleans, previously
authorized to issue sales tax bonds under the provisions of Subpart F of Part III of Chapter
4 of Title 39 of the Louisiana Revised Statutes of 1950, is specifically authorized to iss
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§523. Sales tax bonds
A. A governmental entity that is authorized to levy and collect a sales tax or a
municipality or school board that receives an allocation of a sales tax levied by a parish, may
fund sales tax revenues into bonds and issue the bonds from time to time for the purpose or
purposes for which such tax may be levied, the bonds to be payable from and secured by an
irrevocable pledge and dedication of sales tax revenues subject only to the prior payment of
the costs and expenses of collection and administration of such tax.
B. Any governmental entity, including the city of New Orleans, previously
authorized to issue sales tax bonds under the provisions of Subpart F of Part III of Chapter
4 of Title 39 of the Louisiana Revised Statutes of 1950, is specifically authorized to issue
sales tax bonds pursuant to this Section in the alternative, without the necessity of any further
authorization or voter approval.
C. The maturities of sales tax bonds shall be so arranged that the total amount of
principal and interest falling due in any fiscal year of the governmental entity, together with
principal and interest falling due in such fiscal year on all bonds payable from the same sales
tax theretofore issued and then outstanding, shall never exceed seventy-five percent of the
amount of sales tax revenues estimated by the governing authority to be received by it in the
fiscal year in which the bonds are issued. The final maturity of sales tax bonds shall be no
later than twenty-five years from the date of issuance or the ninety days following the
expiration date of the pledged sales tax, whichever occurs first.
D. Bonds issued under this Section shall constitute a borrowing solely upon the
credit of the sales tax revenues received or to be received by the governmental entity and
shall not constitute an indebtedness or pledge of the general credit of the governmental entity
within the meaning of any constitutional or statutory provision relating to the incurring of
indebtedness, and the bonds shall contain a recital to that effect.
E. As specified by Article VI, Section 29 of the Constitution of Louisiana, when any
bonds shall have been issued under this Section, neither the legislature, the governing
authority, nor any other authority shall discontinue or decrease the sales tax or permit to be
discontinued or decreased the sales tax in anticipation of the collection of which such bonds
have been issued, or in any way make any change in the allocation and dedication of the
proceeds of such sales tax which would diminish the amount of the sales tax revenues to be
received by the governmental entity until all of such bonds shall have been retired as to
principal and interest, and there is hereby vested in the owners and holders from time to time
of such bonds a contractual right under the provisions of this Part.