§9038.42. Tax increment financing; limitations

A.(1) For purposes of this Section, "authorized by Part III of this Chapter to use or engage in tax increment financing" shall mean that the provisions of Part III of this Chapter authorize the political subdivision to levy new taxes, to levy taxes in lieu of other taxes, or both, and to pledge or dedicate tax increments based on such taxes to the payment of, or guaranty of the payment of, bonds or other evidences of indebtedness.

(2) For purposes of this Section, "political subdivision" shall mean any parish, municipality, political subdivision, special district, or local governmental subdivision, including any entity defined by this Chapter as a local governmental subdivision which is authorized by Part III of this Chapter to use or engage in tax increment financing.

B. Notwithstanding any provision of Part III of this Chapter or law to the contrary, the authority granted by Part III of this Chapter to any political subdivision to use or engage in tax increment financing shall be subject to the following limitations:

(1)(a) No tax levied pursuant to Part III of this Chapter shall, or shall be deemed to, supersede or be in lieu of any existing tax that secures bonds that have been authorized or issued or any existing tax that has been dedicated to another purpose by other law or by proposition approved by electors voting in an election held for such purpose. A tax levied pursuant to Part III of this Chapter shall, and shall be deemed to, supersede and be in lieu of only such other taxes that do not secure bonds that have been authorized or issued and that have not been dedicated to another purpose by other law or by proposition approved by electors voting in an election held for such purpose and that are not based on a per head or per person basis.

(b) Those taxes not superseded by a tax authorized by Part III of this Chapter shall continue to be levied and collected for their intended purposes.

(2) A tax increment based upon a tax levied pursuant to Part III of this Chapter shall consist only of the avails of taxes levied pursuant to Part III of this Chapter which supersede and are in lieu of other such taxes levied by other taxing authorities.

(3)(a) The rate of the tax levied by a political subdivision pursuant to Part III of this Chapter shall be such that the aggregate tax rate of all taxes of the same kind levied within the jurisdiction of the taxing area or district by all taxing authorities, including the tax authorized by Part III of this Chapter and other taxes of the same kind levied within the jurisdiction whether or not subject to tax increment financing as provided in Part III of this Chapter, shall be at least equal to the aggregate rate of all taxes of the same kind levied and collected within the jurisdiction by all taxing authorities prior to the levy of the tax by the political subdivision pursuant to Part III of this Chapter.

(b) For purposes of this Section, "taxes of the same kind" shall mean taxes within any one of the following categories:

(i) Hotel occupancy taxes, when the tax levied by a political subdivision pursuant to this Chapter is a hotel occupancy tax.

(ii) Sales taxes, when the tax levied by a political subdivision pursuant to this Chapter is a sales tax.

(iii) Ad valorem taxes, when the tax levied by a political subdivision pursuant to this Chapter is an ad valorem tax.

C. Notwithstanding any provision of this Chapter to the contrary, if any portion of a tax levied or tax increment pledged or dedicated pursuant to this Chapter is held invalid, such invalidity shall not affect the validity of the remaining portion of such tax or tax increment.

Acts 2006, No. 850, §1, eff. July 11, 2006.

NOTE: See Acts 2006, No. 850, §3, relative to intent of Act to conform Part III of Chapter 27 of Title 33 with certain La. Supreme Court decisions.