Restoration Tax Abatement Program
Commercial property owners and homeowners who expand, restore or improve an existing structure located in a Downtown Development District, Economic Development District or Historic District may qualify to have the ad valorem property taxes on substantial renovations and improvements deferred for up to 10 years. Jefferson Parish has several economic development districts on the east and west banks.
Note: Requires advance notice be given to the Louisiana Office of Commerce & Industry.
An Advance Notification Form and a $100 fee must be filed and received by the Office of Business Development, Business Incentives Division(BI) prior to starting construction, purchasing, installing equipment, or hiring. The Advance Notification may be completed on-line at Louisiana E-Mall (credit card required).
The Restoration Tax Abatement (RTA) Program is an economic development incentive created for use by municipalities and local governments to encourage the expansion, restoration, improvement, and development of existing commercial structures and owner-occupied residences in Downtown Development Districts, Economic Development Districts or Historic Districts.
The RTA program does not exempt the acquisition cost of the structure. In addition, only equipment that becomes an integral part of that structure can qualify for this exemption (not machinery and equipment used in the business, ie: retail gondolas or movable property such as furniture and fixtures, etc.) Note: an Enterprise Zone or Economic Development Zone is not a qualifying district.
The program grants a five (5) year deferred assessment of the ad valorem property taxes normally assessed on renovations and improvements. Commercial property owners and homeowners who expand, restore, improve or develop an existing structure in a qualifying district, after completion of the work, pay ad valorem taxes based on the assessed valuation of the property prior to the commencement of the improvements. The tax abatement is not available if property taxes have been paid on the improvements made by the project. If the property is sold, the contract may be transferred, subject to local government and board approval.
- An Advance Notification Form should be filed with the Office of Business Development prior to the beginning of construction, followed by filing the application with the Office of Business Development as soon as possible. The Advance Notification may be completed on-line at Louisiana E-Mall (credit card required)
- The application is then sent to the local governing authority. If approved, the local governing authority will return an approval resolution or ordinance to the Office of Business Development. The application is then presented to the board.
- Upon approval of the application by the Board of Commerce and Industry, a contract is entered into between the applicant and the state. A copy of the contract is sent to the assessor of the parish in which the structure is located.
- An Advance Notification Form, with the $100 fee, must first be filed with the Office of Business Development, Business Incentives Division(BI) and should be received prior to the beginning of construction. After receiving the Advance Notification Form and fee, an application number is assigned and an acknowledgment letter and application packet is sent to the applicant.
- The Application should be filed with the BI along with the Application Fee ** (Minimum $200, see formula below). For “certified historic structures,” a copy of the Application should also be sent to the Division of Historic Preservation. BI staff will review the application for accuracy and determine if all the required documentation has been included.
- The application is then sent to the staff of the local governing authority. The local governing authority must notify the Board of Commerce and Industry within 60 days of receipt of the application. After the staff’s review, the application is presented for approval at a meeting of that local governing authority. If approved by the local governing authority, this resolution, allowing the abatement, will be sent to the BI. Contact JEDCO for local RTA policy guidelines.
- After the BI receives the local governing authority’s resolution, the application is reviewed and recommendation is made to the Board of Commerce and Industry, Screening Committee at its next regularly scheduled meeting (usually the fourth Wednesday of every odd numbered month). The screening committee’s recommendation is presented to the full Board of Commerce and Industry at its next meeting (which is usually the fourth Wednesday of every even numbered month).
- After approval of the application by the Board of Commerce and Industry, a contract is drafted and forwarded to the applicant (now called the Contractee) for signature. When the contractee returns the contracts with their part executed, the contract is signed by the authorized representative of the board and is sent to the governor for his approval and signature. The Governor has 30 days to notify the Board of Commerce and Industry of his decision.
- Copies of the executed contract are forwarded to the contractee, parish assessor, mayor or local governing authority, and any other necessary agency.
- After completion of the project, the contractee must file the contract addendum documents (the Project Completion Report and Affidavit of Final Cost) in accordance with the rules. Copies of these documents are sent to the parish assessor and other contract recipients. Once these contract addendums are received by the Office of Commerce and Industry along with the $100 inspection fee, the contract documentation is complete.
- The contractee is responsible for filing or reporting annually to the assessor, on forms provided by the assessor.
**Important (especially for owner-occupied-residence applicants): Before filing the Advance Notification Form, please be sure that the total property tax savings, over the five-year period, will exceed the total program fees (minimum $400). (Application Fee Formula: project amount (applicable to the structure only) X 10% residential assessment (15% commercial) X total local millage rate X 5 years = total estimated taxes deferred over the 5 year contract period.)