§ 47:3202 — Requirements for exemption

Louisiana § 47:3202

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§3202. Requirements for exemption
A. A contract of exemption from taxation may be entered into by the Board of
Commerce and Industry under this Chapter only if each of the following requirements are
met by the manufacturing establishment, headquarters, or warehousing and distribution
establishments seeking such exemption:
(1) The manufacturing establishment, headquarters, or warehousing and distribution
establishment must either be located in another state or be located in Louisiana and
contemplating locating in another state which has equivalent or comparable advantages as
exist at the particular area in Louisiana in which the establishment is or seeks to be located.
(2) The state in which the establishment is located or is contemplating locating must
have a total state, parish (county) and local tax structure which offers a greater tax advantage
to such establishment than does the taxing structure of Louisiana.
(3) In the case of headquarters, or manufacturing establishment or warehousing and
distribution establishment, the applicant for tax equalization may be any form of business
entity. For purposes of this Chapter, "business entity" shall mean any individual, firm, joint
venture, association, corporation, estate, partnership, business trust, receiver, syndicate, or
any other legal business entity.
(4) The sites under consideration in Louisiana and the competing state must be valid
and viable for the proposed operations.
(5) The secretary of Louisiana Economic Development shall make a recommendation
to the governor to extend an invitation to apply for tax equalization.
(6) An invitation from the governor to apply must have been received by the business
entity.
B. Each applicant shall submit to Louisiana Economic Development such certified
statements and substantiating documents as may be required to establish that each of the
requirements of this Section is satisfied.
C. Any manufacturing establishment or headquarters or warehousing and distribution
establishment applying for an exemption shall submit information indicating a good faith
effort on the part of the applicant to contract with or to do business with businesses
domiciled in the state of Louisiana.
D. Any applicant whose primary business endeavor is the commercial treatment,
disposal, or destruction of hazardous waste generated from outside Louisiana, applying for
an exemption shall submit information relative to the impact the manufacturing
establishment or headquarters or warehousing and distribution establishment has had and
will have on the environment and the history of compliance with environmental laws in this
state or any other state where the applicant has operated.
E.(1) Any applicant applying for an exemption or state-sponsored subsidy shall
designate and set a goal for awarding to economically disadvantaged businesses an amount
not less than ten percent of the value of the anticipated total procurement of goods and
services, including construction, for the exempted project, but without added expense,
provided such certified economically disadvantaged businesses are majority owned and
operated by Louisiana residents and are competent to deliver the required products and
services in a timely manner and perform the required work in a timely manner during
construction and operation of the project. The affected applicant shall submit evidence of
compliance with this Subsection to the Board of Commerce and Industry.
(2) The Board of Commerce and Industry and the Division of Economically
Disadvantaged Business shall adopt rules and regulations pertaining to the identification and
certification of economically disadvantaged businesses which qualify under this Chapter.
(3) The Board of Commerce and Industry and the Division of Economically
Disadvantaged Business shall take into consideration whether economically disadvantaged
contractors are available in granting the exemptions under this Chapter.

Legislative History

Acts 1966, Ex.Sess., No. 12, §2. Amended by Acts 1976, No. 381, §1; Acts 1985, No. 3, §1, eff. May 31, 1985; Acts 1987, No. 307, §1; Acts 1989, No. 491, §1; Acts 1993, No. 400, §1, eff. July 1, 1993; Acts 1998, No. 32, §1; Acts 1998, No. 60, §1; Acts 2005, No. 403, §1.