Authorizes a rebate for inventory taxes paid (OR DECREASE SD RV See Note)

House Bill 650 enacts a new section of Louisiana Revised Statutes 47 to create a state rebate program for local inventory taxes paid. The bill authorizes the Department of Revenue to issue rebates to taxpayers who have paid ad valorem property taxes on inventory to local political subdivisions in Louisiana but who do not qualify for the existing tax credit under R.S. 47:6006. The rebate amount is calculated using the same methodology and percentages as the existing tax credit, based on the amount of ad valorem taxes paid on inventory during the preceding calendar year. The statute bars taxpayers from receiving a rebate if they have already claimed any other state tax benefit, including credits, exemptions, exclusions, deductions, or rebates, for the same local inventory taxes.

The Department of Revenue administers the rebate program by processing applications, issuing rebates, and establishing administrative rules through the Administrative Procedure Act. Taxpayers must apply for the rebate by June 30 of the year following their payment of the local ad valorem taxes on inventory and must submit all documentation required by the department's rules. The statute grants the department authority to recover previously issued rebates that are later disallowed through collection remedies available under R.S. 47:1561.2. The bill requires that rebate payments be funded from current collections of state taxes, rather than from a dedicated appropriation or general fund source.

The rebate statute operates within Louisiana's broader framework of inventory tax relief found in R.S. 47:6006, which provides a tax credit for certain local inventory tax payments. House Bill 650 effectively creates a safety net for taxpayers ineligible for that credit, ensuring they may still obtain state reimbursement for local inventory taxes paid. The rebate provision applies only to ad valorem taxes paid on inventory on or after January 1, 2026, and the statute takes effect on January 1, 2027. The funding mechanism requiring rebates to be paid from current tax collections integrates the program into the state's regular revenue stream rather than creating a separate appropriation obligation.