LA HB365

Creates an optional ad valorem tax exemption on business inventory that parishes may adopt if the sheriff, school board, and parish governing authority all agree to participate

Parishes electing 100% exemption before July 1, 2027 receive a one-time payment from the Revenue Stabilization Trust Fund: up to $15 million for immediate implementation (3x 2026 tax collections or $1 million minimum) or up to $10 million for phased implementation over 5 years (1x 2026 collections or $500,000 minimum)

Allows parishes to alternatively reduce the fair market value percentage used to assess business inventory rather than fully exempting it, though this option does not qualify for state payments

Revenue losses from the exemption must be absorbed by taxing authorities and cannot trigger millage adjustments or create additional tax liability for other taxpayers

Applies to tax years beginning 2026 or later and only takes effect if the related constitutional amendment (HB 366) is adopted by voters