§ 11-30. Housing project properties exempt from property taxation; payments in lieu of taxes.

(a)

Under the constitution and statutes of the state all projects are exempt from all real and personal property taxes and special assessments levied or imposed by any taxing body. With respect to any project, so long as either:

(1)

Such project is owned by a public body or governmental agency and is used for low-rent housing purposes;

(2)

Any contract between the local authority and the federal government for loans or annual contributions, or both, in connection with such project remains in force and effect; or

(3)

Any bonds issued in connection with such project or any monies due to the federal government in connection with such project remain unpaid, whichever period is the longest,

the parish agrees that it will not levy or impose any real or personal property taxes or special assessments upon such project or upon the local authority with respect thereto. During such period, the local authority shall make annual payments (herein called "payments in lieu of taxes") in lieu of such taxes and special assessments and in payment for the public services and facilities furnished from time to time without other costs or charge for or with respect to such project.

(b)

Each such annual payment in lieu of taxes shall be made after the end of the fiscal year established for such project, and shall be in an amount equal to either ten percent of the aggregate shelter rent charged by the local authority in respect to such project during such fiscal year, or the amount permitted to be paid by applicable state law in effect on the date such payment is made, whichever amount is lower.

(c)

The local authority shall distribute the payments in lieu of taxes among the taxing bodies in the proportion which the real property taxes which would have been paid to each taxing body for such year if the project were not exempt from taxation bears to the total real property taxes which would have been paid to all taxing bodies for such year if the project were not exempt from taxation; provided, however, that no payment for any year shall be made to any taxing body in excess of the amount of the real property taxes which would have been paid to such taxing body for such year if the project were not exempt from taxation.

(d)

Upon failure of the local authority to make any payment in lieu of taxes, no lien against any project or assets of the local authority shall attach, nor shall any interest or penalties accrue or attach on account thereof.

(Code 1975, § 11:22)

State law reference

Tax exemption, R.S. 40:505.