Louisiana Revised Statutes 33:9038.57 – Taxing district in the city of Lake Charles
Terms Used In Louisiana Revised Statutes 33:9038.57
- Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Personal property: All property that is not real property.
A. Creation. The governing authority of the city of Lake Charles is hereby authorized to create, by ordinance, a special taxing district and political subdivision of the state, referred to in this Section as the “district”.
B. Boundaries. The district shall be comprised of all or a portion of the area of land described in La. Rev. Stat. 33:4699.1.
C. Purpose. (1) The district shall have as its purpose cooperative economic development with the city of Lake Charles, in order to provide for the financing of the costs and expenses associated with the following:
(a) The renovation, restoration, and development of a hotel in the city of Lake Charles within the area of the district set forth in Subsection B of this Section.
(b) The utilization of sales tax increment financing of the costs and expenses associated with infrastructure improvements constructed in accordance with the Downtown Plan for the commercial or residential development of all or any portion of the property located within the boundaries of the district in accordance with the terms and conditions of the voter referendum held on May 5, 2007, and the design guidelines as referenced therein.
(c) The site plan for any hotel constructed immediately adjacent to the Lake Charles Civic Center pursuant to the authority of this Subsection shall set forth the elevation and design of the hotel and designate the parking area reserved for hotel guests. This site plan shall be approved by ordinance prior to construction of the hotel by the governing authority of the city of Lake Charles.
(2) As used herein, the term “costs and expenses” shall include the costs of construction, renovation, or relocation of the following:
(a) The hotel and related improvements.
(b) Public buildings and other public structures such as parking garages, streets, sidewalks, streetlights, boardwalks, piers, marinas, and related works, utilities, and fixtures.
(c) Any other costs associated with an economic development project as provided for in La. Rev. Stat. 33:9035.1.
D. Governance. In order to provide for the orderly development of the district and effectuation of the purposes of the district, the district shall be administered and governed by a board of commissioners established by the ordinance creating the district.
E. Rights and powers. The district, acting by and through its board of commissioners, shall have and exercise all powers of a political subdivision and special taxing district necessary or convenient for the carrying out of its objects and purposes including but not limited to the following:
(1) To sue and to be sued.
(2) To adopt bylaws and rules and regulations.
(3) To receive by gift, grant, donation, or otherwise any sum of money, property, aid, or assistance from the United States, the state of Louisiana, or any political subdivision thereof, or any person, firm, or corporation.
(4) For the public purposes of the district to enter into contracts, agreements, or cooperative endeavors with the state and its political subdivisions or political corporations and with any public or private association, corporation, business entity, or individual.
(5) Appoint officers, agents, and employees, prescribe their duties, and fix their compensation.
(6) To acquire by gift, grant, purchase, lease, or otherwise such property as may be necessary or desirable for carrying out the objectives and purposes of the district and to mortgage and sell such property.
(7) In its own name and on its own behalf to incur debt and to issue bonds, notes, certificates, and other evidences of indebtedness. For this purpose the district shall be deemed and considered to be an issuer for purposes of La. Rev. Stat. 33:9037 and shall, to the extent not in conflict with this Section, be subject to the provisions of La. Rev. Stat. 33:9037.
(8) Establish such funds or accounts as are necessary for the conduct of the affairs of the district.
F. Hotel occupancy tax. (1) In order to provide funds for the purposes of the district, the district, acting by and through its board of commissioners, is hereby authorized to levy and collect a tax upon the occupancy of hotel rooms, motel rooms, and overnight camping facilities within the area provided for in Subsection B of this Section. The tax rate shall be at least equal to the aggregate rate of all such taxes levied and collected within the city of Lake Charles by the state of Louisiana, local governmental subdivisions, and other political subdivisions or special taxing districts, except for the rate of the tax on the occupancy of hotel rooms levied by the Lake Charles/Southwest Louisiana Convention and Visitors Bureau.
(2)(a) The word “hotel” as used herein shall mean and include any establishment, public or private, engaged in the business of furnishing or providing rooms and overnight camping facilities intended or designed for dwelling, lodging, or sleeping purposes to transient guests where such establishment consists of two or more guest rooms and does not encompass any hospital, convalescent, or nursing home or sanitarium, or any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.
(b) The tax shall be paid by the person who exercises or is entitled to occupancy of the hotel room and shall be paid at the time the rent or fee of occupancy is paid. The word “person” as used herein shall have the same meaning as contained in La. Rev. Stat. 47:301(8).
(c) The hotel shall not advertise room rates to the general public at below market rates for comparable hotels as reflected in the information received by the Lake Charles/Southwest Louisiana Convention and Visitors Bureau. If this information is not available, the district may use data collected by any other public agency which regularly creates or receives data regarding room rates for comparable hotels in the parish.
(3) The tax so authorized shall be imposed by ordinance adopted by the district, acting by and through its board of commissioners, without the need of an election.
(4) It is hereby recognized that without the accomplishment of the purposes of the district that there would be no collection of a hotel occupancy tax by any taxing authority within the district. Accordingly, if the district elects to levy and collect the tax authorized in this Subsection, such levy shall be deemed to supersede and be in lieu of any other tax on hotel occupancy within the district except for the following:
(a) The tax on the occupancy of hotel rooms levied by the Southwest Louisiana Convention and Visitors Bureau.
(b) Any hotel occupancy tax which is levied on a per head or per person basis.
G. Hotel occupancy tax financing. (1)(a) The district may issue revenue bonds payable from an irrevocable pledge and dedication of up to the full amount of hotel occupancy tax increments, in an amount to be determined by the district, to finance or refinance any project or projects, or parts thereof, which are consistent with the purposes of the district. A hotel occupancy tax increment shall consist of that portion of the hotel occupancy tax revenues collected by the district in an amount determined by the board of commissioners and which is in lieu of other such taxes levied by other taxing authorities.
(b) Dedication of hotel occupancy tax increments to pay the revenue bonds shall not impair existing obligations of the district and shall not include tax revenues previously dedicated by the district for a special purpose.
(2) The district may pledge the taxes collected under the authority of this Section to any financing of the hotel property in furtherance of the purposes of the district. Such financing may include but shall not be limited to loans, mortgages, the issuance of bonds, or the issuance of certificates of indebtedness.
H. Bonds. (1)(a) In addition to any other authority provided for in this Section and pursuant to a cooperative endeavor agreement authorized by La. Rev. Stat. 33:9038.34(A), the district may issue revenue bonds payable solely from an irrevocable pledge and dedication of up to the full amount of any sales tax increments designated by the board of commissioners of the district to finance or refinance or to pay all of or a portion of the costs of projects associated with infrastructure improvements constructed in accordance with the Downtown Plan for the commercial or residential development of all or any portion of the property located within the boundaries of the district.
(b) For purposes of this Subsection, the “costs of projects associated with infrastructure improvements” means the costs of construction, renovation or relocation of public improvements, including but not limited to public buildings and other public structures such as streets, sidewalks, streetlights, boardwalks, piers, marinas, and related works, utilities, or fixtures. Such cost shall also include the costs of surveys and the professional fees associated with the preparation of plans and specifications associated with the project’s development.
(2)(a) Notwithstanding the limitations on the use of state sales tax provided in La. Rev. Stat. 33:9038.34(A), a sales tax increment may consist of that portion of state sales tax revenues of any or all taxing authorities including the state of Louisiana and any political subdivision whose boundaries are coterminous with those of the state collected each year on the sale at retail, the use, the lease or rental, the consumption and storage for use or consumption of tangible personal property and on sales of services, all as defined in La. Rev. Stat. 47:301 et seq., or any other appropriate provision or provisions of law, as amended, from taxpayers located within an area of the district designated by the board of commissioners as provided for in Subparagraph (b) of this Paragraph which exceeds the sales tax revenues that were collected by such taxing authorities in the year immediately prior to the year of designation of such area.
(b)(i) The board of commissioners of the district shall establish the area from which sales tax increments are to be pledged and dedicated to the payment of the revenue bonds, hereafter referred to as the “sales tax area.” After the establishment of the boundaries of the sales tax area, the board shall designate the initial annual baseline collection rate for the sales tax area, which shall be the amount of the sales taxes collected in the sales tax area in the fiscal year of the city of Lake Charles most recently completed prior to the establishment of the sales tax area. In addition, a monthly baseline collection rate shall be determined by dividing the initial annual baseline collection rate by twelve.
(ii) The initial annual baseline collection rate and the monthly baseline collection rate shall be certified by the chief financial officer of the city of Lake Charles. The certification shall also be published one time in the official journal of the city of Lake Charles.
(iii) If the amounts of the initial annual baseline collection rate and the monthly baseline collection rate are not contested within thirty days after the said publication, then such amounts shall be conclusively presumed to be valid, and no court shall have any jurisdiction to alter or invalidate the designation of the amount of either the initial annual baseline collection rate or the monthly baseline collection rate.
(c) The increment of the sales taxes which are to be pledged and dedicated to the payment of the revenue bonds shall be the amount of the sales taxes which are collected in the sales tax area each year in excess of the initial annual baseline collection rate. Such pledged sales tax increment may include all or any portion of such excess as determined by the board of commissioners of the district.
(3) Dedication of sales tax increments to pay the revenue bonds shall not impair existing obligations and shall not include tax revenues of a tax authority previously dedicated for a special purpose unless a majority of the electors within the territorial jurisdiction of such tax authority voting at an election held for such purpose approves the use of such tax for the purposes provided for in this Subsection.
I. Contesting ordinance or resolution; time limit. Any ordinance or resolution adopted by the district authorizing the pledge of tax increments collected, as provided in this Section, to secure bonds, debt obligations, or any other authorized financing shall be published at least twice in the official journal of the city of Lake Charles within ten days after adoption. Such publication shall include a notice advising the public that for thirty days after the date of last publication, any person in interest may contest the legality of the ordinance or resolution and of any provision therein made for the security and payment of the debt obligation or the levy and collection of such taxes by filing the appropriate legal action in the Fourteenth Judicial District Court of Calcasieu Parish. After that time, no one shall have any cause of action to test the regularity, formality, legality, or effectiveness of the ordinance or resolution, and provision thereof for any cause whatever. Thereafter, it shall be conclusively presumed that every legal requirement for the levy and collection of taxes, the issuance of bonds or other debt obligations, or the pledge of tax increments collected, including all things pertaining to the authorizing thereof, has been complied with. No court shall have authority to inquire into any of these matters after the thirty day period after publication.
J. Term. The district shall dissolve and cease to exist one year after the date all bonds, notes, and other evidences of indebtedness of the district, including refunding bonds are paid in full as to both principal and interest.
K. Liberal construction. This Section, being necessary for the welfare of the city of Lake Charles and its residents, shall be liberally construed to effect the purposes thereof.
Acts 2004, No. 423, §1, eff. July 1, 2004; Acts 2006, No. 551, §1, eff. June 22, 2006; Acts 2006, No. 850, §4, eff. July 11, 2006; Acts 2015, No. 268, §1.
NOTE: See Acts 2006, No. 850, §3, relative to intent of Act to conform Part III of Chapter 27 of Title 33 with certain La. Supreme Court decisions.