Louisiana. Constitutional Convention (1973).

Records of the Louisiana Constitutional Convention of 1973 (Volume 4) online

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23 denced by a recorded vote. A like vote shall be necessary

24 for the adoption of amendments to bills proposing the same

25 and to reports of conference committees.

26 Section 3. Collection and Refund of Taxes

27 Section 3. The collection of taxes shall not be restrained,

28 and procedures shall be provided for the recovery of illegal

29 taxes paid.

30 Section 4. Limitations on Taxing Power ; Graduated Rates,

31 Severance Tax, and Subdivisions of the State

32 Section 4. (A) Equal and uniform taxes may be levied

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2 upon net incomes, and such taxes may be graduated accord-

2 ing to the amount of net income ; however, the state individual

3 income tax rate on the first ten thousand dollars of taxable

4 income for single return or twenty thousand dollars of tax-

5 able income for joint return shall not exceed two percent.

g (B) Taxes may be levied on natural resources severed from

-7 the soil or water, to be paid proportionately by the owners
g thereof at the time of severance. Natural resources may be
9 classified for the purpose of taxation, and such taxes may be

10 predicated upon either the quantity or value of the products

11 at the time and place of severance. No further or additional

12 tax or license shall be levied or imposed upon oil, gas, or

13 sulphur leases or rights, nor shall any additional value be

14 added to the assessment of land by reason of the presence

15 of oil, gas, or sulphur therein or their production therefrom.

16 However sulphur in place shall be assessed for ad valorem

17 taxation to the person, firm or corporation having the right

18 to mine or produce the same in the Parish where located, at

19 no more than twice the total assessed value of the physical

20 property subject to taxation excluding the assessed value of

21 sulphur above ground, in such parish as is used in sulphur

22 operations. Likewise, severance taxes shall be the only tax on

23 timber ; however, standing timber shall be and remain liable

24 equally with the land on which it stands for ad valorem taxes

25 levied on said land.

26 (C) Political subdivisions of the state shall not levy sever-

27 ance taxes, income taxes or taxes on motor fuel.

28 (D) Three-fourths of the timber severance tax, one-third

29 of the sulphur severance tax, one-fifth of the severance tax

30 on all other natural resources severed from the soil or water,

31 and one-tenth of the royalties from mineral leases on state-

32 owned property shall be remitted to the governing authority

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■^ of the parish in which severance occurs or in which produc-



o tion is had, but the amount of severance tax on sulphur so

Li

n remitted shall not exceed one hundred thousand dollars to

A any parish for any year, and the amount of severance tax on

r all natural resources severed from the soil or water so

a remitted shall not exceed two hundred thousand dollars to

n any parish for any year.

g Section 5. Annual Motor Vehicle License Tax
Q Section 5. The legislature shall impose an annual license

IQ tax of three dollars on automobiles for private use, and on

11 other motor vehicles, an annual license tax based upon horse-

12 power, carrying capacity, or weight, any or all. No parish or

13 municipality may impose any license fee on motor vehicles.

14 Section 6. Forestry

15 Section 6. Forestry shall be practiced in this state, and

16 the legislature shall enact laws therefor.

17 Section 7. State Debt; Full Faith and Credit Obligations

18 Section 7. (A) Unless otherwise authorized by this con-

19 stitution, the state shall have no power to contract, directly

20 or through any state board, agency, or commission, the in-

21 curring of debt or the issuance of bonds except upon the

22 affirmative vote of two-thirds of the members elected to

23 each house of the legislature, and then only if the funds are

24 to be used to repel invasion ; suppress insurrection ; provide

25 relief from natural catastrophes; refund outstanding indebt-

26 edness, but only to obtain a lower effective rate of interest;

27 or make capital improvements, but only in accordance with

28 ^ comprehensive capital budget, which the legislature shall

29 adopt.

30 (B) If the purpose is to make capital improvements, the

31 nature, location, and if more than one project, the amount

32 allocated to each and the order of priority shall be stated in

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C. P. No. 15

1 the comprehensive capital budget which the legislature adopts.

2 (C) The full faith and credit of the state shall be pledged

3 to the repayment of all bonds or other evidences of indebted-

4 ness issued by the state directly or through any state board,

5 agency, or commission.

6 (D) The legislature, by two-thirds affirmative vote of the

7 members elected to each house thereof, may propose a state-

8 wide public referendum for the incurrence of debt for any

9 purpose for which the legislature is not herein authorized

10 to incur debt.

11 Section 8. State Debt; Interim Emergency Board

12 Section 8. (A) The Interim Emergency Board hereby is

13 created and shall be composed of the governor, the state trea-

14 surer, the legislative auditor, the chairman of the Senate

15 Finance Committee, and the chairman of the House Appro-

16 priations Committee, or their designees.

17 (B) During the interim between sessions of the legislature,

18 whenever it is determined by majority vote of the Interim

19 Emergency Board that an emergency exists, and then only

20 for a purpose for which the legislature may appropriate funds,

21 after having obtained, as provided by law, the written con-

22 sent of two-thirds of all members elected to each house of

23 the legislature, the Interim Emergency Board may appro-

24 priate from the State General Fund, or borrow upon the full

25 faith and credit of the state an amount to care for an emer-

26 gency, which is an event or occurrence not reasonably antici-

27 pated by the legislature.

28 (C) The aggregate of indebtedness outstanding at any one

29 time and the amount appropriated from the State General

30 Fund for the current fiscal year under the authority of this

31 Section shall not exceed one-tenth of one percent of total

32 state revenue receipts for the previous fiscal year.

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C. P. No. 15

1 (D) Each fiscal year, as a first priority, there hereby is

2 allocated from the State General Fund an amount sufficient
8 to pay any indebtedness incurred during the preceding fiscal

4 year under the authority of this Section.

5 Section 9. State Debt ; Maximum Debt Service Expense for

6 All Purposes

7 Section 9. The legislature shall enact no law authorizing

8 the incurrence of state debt, whether contracted directly by

9 the state or indirectly through a state board, agency, or com-
iO mission, if incurrence of the indebtedness would result in

11 total annual debt service requirements on all state obliga-

12 tions, whether outstanding or authorized and unissued, ex-

13 ceeding an amount equal to fifteen percent of the average

14 total revenues from state sources available for debt service

15 for the preceding three years.

16 Section 10. State Debt ; Political Subdivisions of the State ;

17 Issuance and Sale of Obligations; State Bond Commission;

18 Approval Required

19 Section 10. (A) The State Bond Commission hereby is

20 created and its membership and authority shall be deter-

21 mined by the legislature.

22 (B) No bonds or other obligations shall be issued or sold

23 by the state, directly or through any state board, agency, or

24 commission, or by any political subdivision of the state, un-

25 less prior written approval of the State Bond Commission is

26 obtained.

27 (C) Limited Time for Contesting State Bonds. Bonds,

28 notes, certificates, or other evidence of indebtedness (here-

29 after referred to collectively as "bonds") shall not be invalid

30 for any irregularity or defect in the proceedings or the issu-

31 ance and sale thereof, and shall be incontestible in the hands

32 of a bona fide purchaser or holder thereof. The issuing agency,

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C. P. No. 15

1 after authorizing the issuance of bonds by resolution, shall

2 publish once in the official journal of the state a notice of
$ intention to issue the bonds and a description thereof and

4 the security therefor and for a period of thirty days only

5 after such publication any person in interest shall have the
right to contest the legality of said resolution and any pro-

7 vision therein of the bonds to be issued pursuant thereto and

8 the provisions securing the bonds an^ the validity of all

9 other provisions and proceedings in connection with the

10 authorization and issuance of the bonds. If such action or

11 proceedings shall not have been instituted within the said

12 30 day period, no one shall have any right of action to con-
18 test the validity of the bonds or the provisions of the resolu-
14 tion pursuant to which the bonds were issued or the security
16 of the bonds or the validity of any other provisions or pro-

16 ceedings in connection with the authorization and issuance

17 of the bonds and all the bonds conclusively shall be presumed

18 to be legal, and no court thereafter shall have authority to

19 inquire into such matters.

20 Section 11. Collection of State Funds; Bond Security and

21 Redemption Fund

22 Section 11. All money received by the state or by any
28 state board, agency, or commission, immediately upon re-
24 ceipt, shall be deposited in the state treasury, except money
26 received as the result of grants or donations or other forms

26 of assistance when the terms and conditions thereof or of

27 agreements pertaining thereto require otherwise, and except

28 money received by trade or professional associations and

29 then only if excluded by the affirmative vote of two-thirds

30 of the members elected to each house of the legislature, and
81 except money received by state agencies operating under
32 authority of this constitution preponderantly from fees and

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C. P. No. 15

1 charges for the shipment of goods in international maritime

£ trade and commerce.

3 Subject to contractural obligations existing at the time this

4 constitution is adopted, all state money deposited in the state
g treasury, except money received as the result of grants or
g donations or other forms of assistance when the terms and
7 conditions thereof or of agreements pertaining thereto re-
g quire otherwise, shall be credited to a special fund designated
g as the Bond Security and Redemption Fund. In each fiscal

JO year there hereby is allocated from the Bond Security and

jj Redemption Fund an amount sufficient to pay all obligations, ■

22 including but not necessarily limited to principal, interest,

jg premiums, sinking or reserve fund requirements, which are

14 secured by the full faith and credit of the state and which I

15 become due and payable within the current fiscal year.
l(j Thereafter, all money remaining in the Bond Security and
J7 Redemption Fund shall be credited to the State General Fund.

18 Section 12. Expenditure of State Funds

19 Section 12. (A) Money shall be drawn from the state

20 treasury only pursuant to an appropriation made in accor-

21 dance with law.

22 (B) Total appropriations made by the legislature for any

23 fiscal year shall not be greater than the anticipated revenues

24 of the state.

26 (C) The legislature shall provide for the publication of a

26 regular statement of receipts and expenditures of all state

27 money at intervals of not more than one year.

28 (D) Except as otherwise provided in this constitution, no

29 appropriation shall allocate to any object the proceeds of

80 any particular tax or a part or percentage thereof except

81 when required by the federal government for participation

82 in federal programs.

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C. P. No. 15

1 (E) No appropriation shall be made except for public

■■> purposes.

3 Section 13. Management of State Funds; Budgets

A Section 13. (A) The governor shall submit to the legisla-

5 ture, at a time fixed by law, a budget estimate for the next

g fiscal year setting forth all proposed state expenditures and

Y anticipated state revenues, and shall submit a general appro-

g priation bill to authorize the proposed ordinary operating ex-

9 penditures and, if necessary, a bill or bills containing recom-

1 Q mendations in the budget for new or additional revenues.

jl (B) The governor shall submit to each regular session of

22 the legislature a proposed five-year capital outlay program

ig with a request for implementation of the first year of the

14 five-year program. All capital outlay projects approved by

15 the legislature shall be made a part of the comprehensive
Ig state capital budget which shall be adopted by the legislature.

17 Section 14. Management of State Funds; Public Record

18 Section 14. All reports anii records of the collection, ex-

19 penditure, investment, and use of state moneys and all re-

20 ports and records relating to state obligations shall be

21 matters of public record, except returns of taxpayers and

22 matters pertaining thereto.

28 Section 15. Management of State Funds; Investment

24 Section 15. All money available for investment in the cus-

25 tody of the state treasurer shall be invested as provided by

26 law.

27 Section 16. Management of State Funds; Prohibition of

28 Loan, Pledge, or Donation of Public Property; Exceptionr

29 for Public Purpose

30 Section 16. (A) The funds, credit, property or things of

31 value of the state, or of any political corporation thereof,

32 shall not be loaned, pledged, or donated to or for any person

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Engrossed

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C. P. No. 15

1 or persons, associations or corporations, public or private,

2 nor shall the state nor any political corporation purchase or

3 subscribe to the capital stock or stock of any corporation or

4 association whatever or for any private enterprise.

5 (B) Nothing contained in this Section shall prevent inter-

6 cooperation between the state and its political corporations

7 or between political corporations, or between the state or its

8 political corporations and the United States, or between the

9 state or its political corporations and any public or private

10 association or corporation or individual for a public purpose.

11 Section 17. Release of Obligation to State. Parish or Munic-

12 ipal Corporation; Taxes on Confiscated Property

13 Section 17. The legislature shall have no power to release

14 or extinguish or to authorize the releasing or extinguish-

15 ment, in whole or in part, of the indebtedness, liability, or
] G obligation of any corporation or individual to the state, or

17 to any parish or municipal corporation thereof, provided,

18 that the heirs to confiscated property may be released from all

19 taxes due thereon at the date of its reversion to them; and

20 provided that, whenever any immovable property has been

21 forfeited or adjudicated to the state for the nonpayment of

22 taxes due prior to January 1, 1880, and the state did not

23 sell or dispose of the same or dispossess the tax debtor or

24 his heirs, successors, or assigns prior to the adoption of the

25 Constitution of 1921, it shall be presumed conclusively that

26 such forfeiture or adjudication was irregular and null or

27 that the property has been redeemed, and the state and its

28 assigns shall be estopped forever from setting up any title

29 to such property by virtue of such forfeiture or adjudication.

30 Section 18. Legislation to Enable Compliance with Federal

31 Laws and Regulations to Secure Federal Aid in Capital Im-
3^ provement Projects

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14
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16
17
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Reprinted as Engrossed

CC-1076

C. P. No. 15

Section 18. The legislature may enact legislation to enable
the state, its agencies, boards, and commissions, and political
subdivisions of the state and their agencies to comply with
federal laws and regulations in order to secure federal par-
ticipation in the cost of capital improvement projects.



First Enrollment

CC-1076

1 Constitut lonnl Convention of Louisiana of 1973

2 COIIMITTLi: I'KOl'OSAL NUMlillR 15

3 Introduced by Delcg.ite Rayburn, Chairm.Tn, on belialf of the

4 Committee on Revenue, Finance and Taxation, and Dclecates
Alarlo, Badeaux, Brown, Champagne, Chehardy, Conroy,
De Blieux, Edwards, Fontenot , Lowe, McDanlel, Mauberret,
Mire, Newton, Nunez, Planchard, Roemet,, Schmltt, Slay,
Smith, Triche, and Winchester



5

6

7

8

9

10

U



A PROPOSAL



12 Relative to the tax structure of the state and to public

13 finance.

H Be it adopted by the Constitutional Convention of Louisiana
15 of 1973:



16
17

18
19



ARTICLE XI. REVENUE AND FINANCE
Section 1. Power to Tax; Public Purpose
Section 1. Except as otherwise provided in this constitu-

20 tioD, the power of taxation shall be vested in the legislature,

21 shall never be surrendered, suspended, or contracted away, and

22 shall be imposed for public purposes only.

23 Section 2. Power to Tax; Limitation

24 Section 2. The levy of a new tax or any Increase in an

25 existing tax or any repeal of an existing exemption from a

25 tax shall require the favorable vote of two-thirds of the
27 members elected to each house of the legislature.

26 Section 3. Collection of Taxes; Process to Restrain;

29 Refunds

30 Section 3. The legislature shall provide against the

31 issuance of process to restrain the collection of any tax and

32 for a complete and adequate remedy for the prompt recovery by

33 every taxpayer of any illegal tax paid by him.

34 Section 4. Limitations on Taxing Power; Graduated

35 Rates, Severance Tax, and Subdivisions of the State



i



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CC-1076

C. P. No. 15

1 Section U. (A) Equal and uniform taxes may be levied

2 upon net incomes, and such taxes may be graduated according

3 to the amount of net Income; however , the state Individual

4 and joint Income tax schedule of rates shall never exceed

5 the rates presently set forth in Title 47, Section 32 of the
^ Louisiana Revised Statutes. Federal income taxes paid shall
•J be allowed as a deductible item In computing state income

g taxes paid during the same period.

9 (B) Taxes may be levied on natural resources severed

10 from the soil or water, to be paid proportionately by the
XI owners thereof at the time of severance . Natural resources
\2 inay be classified for the purpose of taxation, and such taxes

13 may be predicated upon either the quantity or value of the

14 products at the time and place of severance. No further or

15 additional tax or license shall be levied or imposed upon

16 oil, gas, or sulphur leases or rights, nor shall any addl-

17 tlonal value be added to the assessment of land by reason
X8 of c^e presence of oil, gas, or sulphur therein or their
IQ production therefrom. However sulphur in place shall be

20 assessed for ad valorem taxation to the person, firm or

21 corporation having the right to mine or produce the same In

22 the Parish where located, at no more than twice the total

23 assessed value of the physical property subject to taxation

24 excluding the assessed value of sulphur above ground, in such

25 parish as is used In sulphur operations. Likewise, severance

26 taxes shall be the only tax on timber; however, standing timber
21 shall be and remain liable equally with the land on which It

28 stands for ad valorem taxes levied on said land.

29 (C) Political subdivisions of the state shall not levy

30 severance taxes, income taxes or taxes on motor fuel.

31 (D) Three-fourths of the timber severance tax, one-

32 third of the sulphur severance tax, one-fifth of the severance

33 tax on al! other natural resources severed from the soil or

34 water, and one-tenth of the royalties from mineral leases on

35 state-o^Jned property shall be remitted to the governing



CC-1076

C. P. No. 15

1 authority of the parish in which severance occurs or in

2 which production is had, but the amount of severance tax on

3 sulphur so remitted shall not exceed one hundred thousand

4 dollars to any parish for any year, and the amount of sever-

5 ance tax on all other natural resources expept timber severed

6 from the soil or water so remitted shall not exceed five

7 hundred thousand dollars to any parish for any year,
g Section 5. Annual Motor Vehicle License Tax

^ Section 5. The legislature shall impose an annual

jQ license tax of three dollars on automobiles for private

11 use, and on other motor vehicles, an annual license tax

12 based upon horsepower, carrying capacity, or weight, any or

13 all. No parish or municipality may impose any license fee
j^^ on motor vehicles.

15 Section 7. State Debt; Full Faith and Credit Obligations

16 Section 7. (A) Unless otherwise authorized by this con-

17 stitutlon, the state shall have no power, directly or indirectly,

18 or through any state board, agency, commission or othen^ise, to

19 Incur debt or to issue bonds except upon the affirmative

20 vote of two-thirds of the members elected to each house of the
2\ legislature, and then only If the funds are to be used to repel

22 Invasion; suppress insurrection; provide relief from natural

23 catastrophes; refund outstanding indebtedness at the same or at
2^^ a lower effective rate of Interest; or make capital

25 Improvements, but only in accordance with a comprehensive capital

«, budget, which the legislature shall adopt. Legislative approval

^ may be obtained only during open session except as otherwise

28 provided in this constitution.

29 (B) If the purpose is to make capital Improvements,

30 the nature, location, and if more than one project, the

21 amount allocated to each and the order of priority shall

32 be stated In the comprehensive capital budget which the

33 legislature adopts.

34 (C) The full faith and credit of the state shall be

35 pledged to the repayment of all bonds or other evidences of



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C. P. No. 15

1 Indebtedness issued by the state directly or through any

2 state board, agency, or commission.

3 (D) The legislature, by two- thirds affirmative vote
t^ of the members elected to each house therepf, may propose

5 a statewide public referendum for the incurrence of debt for
^ any purpose for which the legislature is npt herein authorized

7 to incur debt.

8 (E) Nothing contained in this Section shall apply to any

9 levee district, any political subdivision or local public agency

10 unless the full faith and credit of the state is pledged to the



CC-1076

C. P. No. 15

1 (D) Each fiscal year, as a first priority, there

2 hereby is allocated from the State General Fund an amount

3 sufficient to pay any indebtedness incurred during the

i^ preceding fiscal year under the authority of this Section.

5 Section 10. State Debt; Political Subdivisions of the

6 State; Issuance and Sale of Obligations; State Bond

7 Commission ; Approval Required

8 Section 10. (A) The State Bond Commission hereby is

9 created and its membership and authority shall be determined

10 by the legislature.



W payment of the bonds of such levee district or political subdivision, w



(B) No bonds or other obligations shdll be issued or



12 Section 8. State Debt; Interim Emergency Board

13 Section 8. (A) The Interim Emergency Board hereby is created

14 and shall be composed of the governor, the lieutenant governor,

15 the state treasurer, the presiding officers of both houses of the

16 legislature, the chairman of the Senate Finance Committee, and

17 the chairman of the House Appropriations Committee, or their
Ig designees.

«g (B) During the interim between sessions of the legis-

20 lature, whenever it is determined by majority vote of the

21 Interim Emergency Board that an emergency exists , and then

22 only for a purpose for which the legislature may appropriate

23 funds, after having obtained, as provided by law, the written

24 consent of two-thirds of all members elected to each house of



Online LibraryLouisiana. Constitutional Convention (1973)Records of the Louisiana Constitutional Convention of 1973 (Volume 4) → online text (page 26 of 65)