§21. Other Property Exemptions
Section 21. In addition to the homestead exemption provided for in Section 20 of this
Article, the following property and no other shall be exempt from ad valorem taxation:
(A) Public lands and other public property used for public purposes. Land or
property owned by another state or owned by a political subdivision of another state shall not
be exempt under this Paragraph.
(B)(1)(a)(i) Property owned by a nonprofit corporation or association organized and
operated exclusively for religious, dedicated places of burial, charitable, health, welfare,
fraternal, or educational purposes, no part of the net earnings of which inure to the benefit
of any private shareholder or member thereof and which is declared to be exempt from
federal or state income tax; and
(ii) medical equipment leased for a term exceeding five years to such a nonprofit
corporation or association which owns or operates a small, rural hospital and which uses the
equipment solely for health care purposes at the hospital, provided that the property shall be
exempt only during the term of the lease to such corporation or association, and further
provided that "small, rural hospital" shall mean a hospital which meets all of the following
(aa) It has less than fifty Medicare-licensed acute care beds.
(bb) It is located in a municipality with a population of less than ten thousand which
has been classified as an area with a shortage of health manpower by the United States
Health Service; and
(b) property leased to such a nonprofit corporation or association for use solely as
housing for homeless persons, as defined by regulation adopted by the tax commission or its
successor provided that the term of such lease shall be for at least five years, that as a
condition of entering into the lease the property be in compliance with all applicable health
and sanitation codes for use as housing for homeless persons, that the lease shall provide that
compensation to be paid the lessor shall not exceed one dollar per year, and that such
contract of lease shall recite that the property shall be used exclusively for the purpose of
housing the homeless, and further provided that at such time as the property is no longer used
solely as housing for homeless persons, the property shall no longer be exempt from taxation;
(2) property of a bona fide labor organization representing its members or affiliates
in collective bargaining efforts; and
(3) property of an organization such as a lodge or club organized for charitable and
fraternal purposes and practicing the same, and property of a nonprofit corporation devoted
to promoting trade, travel, and commerce, and also property of a trade, business, industry or
professional society or association, if that property is owned by a nonprofit corporation or
association organized under the laws of this state for such purposes.
None of the property listed in Paragraph (B) shall be exempt if owned, operated,
leased, or used for commercial purposes unrelated to the exempt purposes of the corporation
(C)(1) Cash on hand or deposit;
(2) stocks and bonds, except bank stocks, the tax on which shall be paid by the
(3) obligations secured by mortgage on property located in Louisiana and the notes
or other evidence thereof;
(4) loans by life insurance companies to policyholders, if secured solely by their
(5) the legal reserve of domestic life insurance companies;
(6) loans by a homestead or building and loan association to its members, if secured
solely by stock of the association;
(7) debts due for merchandise or other articles of commerce or for services rendered;
(8) obligations of the state or its political subdivisions;
(9) personal property used in the home or on loan in a public place;
(10) irrevocably dedicated places of burial held by individuals for purposes of burial
of themselves or members of their families;
(11) agricultural products while owned by the producer, agricultural machinery and
other implements used exclusively for agricultural purposes, animals on the farm, and
property belonging to an agricultural fair association;
(12) property used for cultural, Mardi Gras carnival, or civic activities and not
operated for profit to the owners;
(13) rights-of-way granted to the State Department of Highways;
(14) boats using gasoline as motor fuel;
(15) commercial vessels used for gathering seafood for human consumption; and
(16) ships and oceangoing tugs, towboats, and barges engaged in international trade
and domiciled in Louisiana ports. However, this exemption shall not apply to harbor, wharf,
shed, and other port dues or to any vessel operated in the coastal trade of the states of the
(17) Materials, boiler fuels, and energy sources used by public utilities to fuel the
generation of electricity.
(18) All incorporeal movables of any kind or nature whatsoever, except public
service properties, bank stocks, and credit assessments on premiums written in Louisiana by
insurance companies and loan and finance companies. For purposes of this Section,
incorporeal movables shall have the meaning set forth in the Louisiana Civil Code of 1870,
(19) All artwork including sculptures, glass works, paintings, drawings, signed and
numbered posters, photographs, mixed media, collages, or any other item which would be
considered as the material result of a creative endeavor which is listed as a consignment
article by an art dealer.
(D)(1) Raw materials, goods, commodities, and articles imported into this state from
outside the states of the United States:
(a) so long as the imports remain on the public property of the port authority or docks
of the common carrier where they first entered this state;
(b) so long as the imports (other than minerals and ores of the same kind as any
mined or produced in this state and manufactured articles) are held in this state in the original
form in bales, sacks, barrels, boxes, cartons, containers, or other original packages, and raw
materials held in bulk as all or a part of the new material inventory of manufacturers or
processors, solely for manufacturing or processing; or
(c) so long as the imports are held by an importer in any public or private storage in
the original form in bales, sacks, barrels, boxes, cartons, containers, or other original
packages and agricultural products in bulk. This exemption shall not apply to these imports
when held by a retail merchant as part of his stock-in-trade for sale at retail.
(2) Raw materials, goods, commodities, and other articles being held on the public
property of a port authority, on docks of any common carrier, or in a warehouse, grain
elevator, dock, wharf, or public storage facility in this state for export to a point outside the
states of the United States.
(3) Goods, commodities, and personal property in public or private storage while in
transit through this state which are moving in interstate commerce through or over the
territory of the state or which are in public or private storage within Louisiana, having been
shipped from outside Louisiana for storage in transit to a final destination outside Louisiana,
whether such destination was specified when transportation began or afterward.
Property described in Paragraph (D), whether or not entitled to exemption, shall be
reported to the proper taxing authority on the forms required by law.
(E) Motor vehicles used on the public highways of this state, from state, parish,
municipal, and special ad valorem taxes.
(F) Notwithstanding any contrary provision of this Section, the State Board of
Commerce and Industry or its successor, with the approval of the governor, may enter into
contracts for the exemption from ad valorem taxes of a new manufacturing establishment or
an addition to an existing manufacturing establishment, on such terms and conditions as the
board, with the approval of the governor, deems in the best interest of the state.
The exemption shall be for an initial term of no more than five calendar years, and
may be renewed for an additional five years. All property exempted shall be listed on the
assessment rolls and submitted to the Louisiana Tax Commission or its successor, but no
taxes shall be collected thereon during the period of exemption.
The terms "manufacturing establishment" and "addition" as used herein mean a new
plant or establishment or an addition or additions to any existing plant or establishment
which engages in the business of working raw materials into wares suitable for use or which
gives new shapes, qualities or combinations to matter which already has gone through some
(G) Coal or lignite stockpiled in Louisiana for use in Louisiana for industrial or
manufacturing purposes or for boiler fuel, gasification, feedstock, or process purposes.
(H) Notwithstanding any contrary provision of this constitution, the State Board of
Commerce and Industry or its successor, with the approval of the governor and the local
governing authority and in accordance with procedures and conditions provided by law, may
enter into contracts granting to a property owner, who proposes the expansion, restoration,
improvement, or development of an existing structure or structures in a downtown, historic,
or economic development district established by a local governing authority or in accordance
with law, the right for an initial term of five years after completion of the work to pay ad
valorem taxes based upon the assessed valuation of the property for the year prior to the
commencement of the expansion, restoration, improvement, or development. Contracts may
be renewed, subject to the same conditions, for an additional five years extending such right
for a total of ten years from completion of the work.
(I)(1) Notwithstanding any contrary provision of this Section, the authority or district
charged with economic development of each parish is hereby authorized to enter into
contracts for the exemption from parish, municipal, and special ad valorem taxes of goods
held in inventory by distribution centers. In the absence of the existence of an economic
development authority or district, the parish governing authority is authorized to grant
contracts of exemption as are provided for in this Paragraph.
(2) The contract for exemption shall be on such terms and to the extent, up to and
including the full assessed valuation of the goods held in inventory, as the economic
development authority or district deems in the best interest of the parish. However, prior to
entering into each individual contract, the economic development authority or district must
request and receive written approval of the contract, including its terms and an estimated
fiscal impact, from each affected tax recipient body in the parish, as evidenced by a favorable
vote of a majority of the members of the governing authority of the tax recipient body.
Failure to receive all required approvals from the tax recipient bodies before entering into
a contract shall render the contract null and void and of no effect.
(3) The term "distribution center" as used herein means an establishment engaged
in the sale of products for resale or further processing for resale. The term "goods held in
inventory" as used herein means goods or products which have been given new shapes,
qualities, or combinations through some artificial process and does not include raw materials
such as natural gas, crude oil, sulphur, or timber or goods or products held for sale to
(J)(1) Drilling rigs used exclusively for the exploration and development of minerals
outside the territorial limits of the state in Outer Continental Shelf waters which are within
the state for the purpose of being stored or stacked for use outside the territorial limits of the
state, or for the purpose of being converted, renovated, or repaired, and any property in the
state for the purpose of being incorporated in, or to be used in the operation of said drilling
(2) The exemption provided in this Paragraph shall be applicable in any parish in
which the exemption has been approved by a majority of the electors of the parish voting
thereon at an election called for that purpose.
(K)(1) On and after January 1, 2015, in addition to the homestead exemption
authorized under the provisions of Article VII, Section 20 of this constitution, which applies
to the first seven thousand five hundred dollars of the assessed valuation of property, the next
seven thousand five hundred dollars of the assessed valuation of property receiving the
homestead exemption that is owned and occupied by a veteran with a service-connected
disability rating of one hundred percent unemployability or totally disabled by the United
States Department of Veterans Affairs shall be exempt from ad valorem taxation. The
surviving spouse of a deceased veteran with a service-connected disability rating of one
hundred percent unemployability or totally disabled by the United States Department of
Veterans Affairs shall be eligible for this exemption if the surviving spouse occupies and
remains the owner of the property, whether or not the exemption was in effect on the
property prior to the death of the veteran. If property eligible for the exemption provided for
in this Paragraph has an assessed value in excess of fifteen thousand dollars, ad valorem
property taxes shall apply to the assessment in excess of fifteen thousand dollars.
(2) Notwithstanding any provision of this constitution to the contrary, the property
assessment of a property for which this exemption has been claimed, to the extent of seven
thousand five hundred dollars, shall not be treated as taxable property for purposes of any
subsequent reappraisals and valuation for millage adjustment purposes under Article VII,
Section 23(B) of this Constitution. The decrease in the total amount of ad valorem tax
collected by a taxing authority as a result of the exemption shall be absorbed by the taxing
authority and shall not create any additional tax liability for other taxpayers in the taxing
district as a result of any subsequent reappraisal and valuation or millage adjustment.
Implementation of the exemption authorized in this Paragraph shall neither trigger nor be
cause for a reappraisal of property or an adjustment of millages pursuant to the provisions
of Article VII, Section 23(B) of this constitution.
(3)(a) The exemption provided for in this Paragraph shall extend and apply in a
parish only if it is established through an election that shall be called by either an ordinance
or a resolution from the parish governing authority. The proposition shall state that the
exemption shall extend and apply in the parish and become effective only after the question
of its adoption has been approved by a majority of the registered voters of the parish voting
in an election held for that purpose.
(b) If a parish held an election as provided by this Subparagraph and the electors
approved the exemption prior to November 4, 2014, the parish may implement the
exemption as amended by the statewide electors on November 4, 2014, without holding an
(L)(1) Except as otherwise provided herein, property owned or leased by, and used
by, a targeted non-manufacturing business in the operation of its facility, including buildings,
improvements, equipment, and other property necessary or beneficial to such operation,
according to a program and pursuant to contracts of exemption which contain such terms and
conditions which shall be provided by law. Land underlying the facility and other property
pertaining to the facility on which ad valorem taxes have previously been paid, inventories,
consumables, and property eligible for the manufacturing exemption provided by Paragraph
(F) of this Section, shall not be exempt under this Paragraph.
(2) Ad valorem taxes shall apply to the assessed valuation of the first ten million
dollars or ten percent of fair market value, whichever is greater, and this amount of property
shall not be exempt under this Paragraph.
(3) A targeted non-manufacturing business means at least fifty percent of such
business' total annual sales from a site or sites in the state is to out-of-state customers or
buyers, or to in-state customers or buyers but the product or service is resold by the purchaser
to an out-of-state customer or buyer for ultimate use, or to the federal government, or any
combination thereof. The legislature may provide by law for the inclusion of sales by
affiliates when appropriate in making this fifty percent determination.
(4) A contract for the exemption shall be available only in parishes which have
agreed to participate, in the manner provided by the legislature by law.
(M)(1) For ad valorem taxes due in 2017 and thereafter, an unmarried surviving
spouse of a person who died while on active duty as a member of the armed forces of the
United States or the Louisiana National Guard, or while performing their duties as a state
police officer, or a law enforcement or fire protection officer who qualified for the salary
supplement authorized in Section 10(D)(3) of this Article is entitled to an exemption from
ad valorem tax for the total assessed value of their homestead. The exemption shall apply
beginning in the tax year in which the person died or 2017, whichever is later, and shall be
applicable only if all of the following conditions are met:
(a) The property is eligible for the homestead exemption and the property was the
residence of the member of the armed forces of the United States or the Louisiana National
Guard, the state police officer, or the law enforcement or fire protection officer when the
member or officer died.
(b) The surviving spouse has not remarried.
(c) The surviving spouse annually provides evidence of their eligibility for the
exemption in accordance with the requirements of Subparagraph (2) of this Paragraph.
(2) Each assessor shall establish a procedure whereby a person may annually apply
for the exemption. Eligibility for the exemption shall be established by the production of
documents and certification of information by the surviving spouse to the assessor as
(a) In an initial application for the exemption, the surviving spouse shall produce
documentation issued by their deceased spouse's employer evidencing the death.
(b) For purposes of the continuation of an existing exemption, the surviving spouse
shall annually provide a sworn statement to the assessor attesting to the fact that the
surviving spouse has not remarried.
(3) Once an unmarried surviving spouse has qualified for and taken the exemption,
if the surviving spouse then acquires a different property which qualifies for the homestead
exemption, the surviving spouse shall be entitled to an exemption on that subsequent
homestead, the exemption being limited in value to the amount of the exemption claimed
on the prior homestead in the last year for which the exemption was claimed. The assessor
may require the submission of certain information concerning the amount of the exemption
on the prior homestead for purposes of determining the extent of the exemption available for
the subsequent homestead.
Amended by Acts 1981, No. 942, §1, eff. Oct. 16, 1982; Acts 1981, No. 943, §1, eff.
Oct. 16, 1982; Acts 1981, No. 944, §1, eff. Oct. 16, 1982; Acts 1989, No. 845, §1, approved
Oct. 6, 1990, eff. Jan. 1, 1991; Acts 1990, No. 1101, §1, approved Oct. 6, 1990, eff. Jan. 1,
1991; Acts 1990, No. 1104, §1, approved Oct. 6, 1990, eff. Jan. 1, 1991; Acts 1996, No. 47,
§1, approved Sept. 21, 1996, eff. Nov. 5, 1996; Acts 2003, No. 1297, §1, approved Oct. 4,
2003, eff. Jan. 1, 2004; Acts 2005, No. 509, §1, approved Nov. 7, 2006, eff. Jan. 1, 2007;
Acts 2005, No. 510, §1, approved Nov. 7, 2006, eff. Jan. 1, 2007; Acts 2005, No. 512, §1,
approved Nov. 7, 2006, eff. Dec. 11, 2006; Acts 2010, No. 1049, §1, approved Nov. 2, 2010,
eff. Jan. 1, 2011; Acts 2012, No. 871, §1, approved Nov. 6, 2012, eff. Jan. 1, 2013; Acts
2012, No. 875, §1, approved Nov. 6, 2012, eff. Dec. 10, 2012; Acts 2013, No. 433, §1, eff.
Dec. 9, 2014; Acts 2015, No. 470, §1, approved Oct. 24, 2015, eff. Nov. 25, 2015; Acts
2016, No. 678, §1, eff. Dec. 1, 2016.