Act 298 of the 2007 Regular Session of the Louisiana Legislature - PowerPoint PPT Presentation

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Act 298 of the 2007 Regular Session of the Louisiana Legislature


Focus on cultural compound, art institution, art/entertainment businesses ... Promote the arts and support artists. Develop an image. Enhance property values ... – PowerPoint PPT presentation

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Title: Act 298 of the 2007 Regular Session of the Louisiana Legislature

  • Act 298 of the 2007 Regular Session of the
    Louisiana Legislature
  • By Rep Townsend

Louisiana Cultural Districts
  • providing tax exemptions and credits in locally
    designated districts

Cultural Districts Background
  • Cultural Economy Initiative
  • 144,000 jobs pre Katrina and Rita in 2005
  • Search for economic tools to
  • Bring back Louisianas creative talent, to
    promote the growth and development of cultural
    production within the state, and to support
    entrepreneurial development within the cultural

MT Auburn Associates
  • Tax incentive research Feb. 2007
  • Three major categories
  • artist-based incentives
  • industry-based incentives
  • place-based incentives

Cultural Districts
Primary Goal- (modeled after DDD legislation)
  • revitalize communities by creating locally driven
    hubs of cultural activity

Cultural District
  • Geographically contiguous
  • Vital role in cultural life of community
  • Focus on cultural compound, art institution,
    art/entertainment businesses
  • Where artisan production, promotion, preservation
    and education occurs contributing to the public

HB 359 overview
  • Allows local communities to designate cultural
  • Provides for state and local tax exemption on
    sales of original art
  • Expands historic preservation tax credits on
    commercial and owner-occupied properties to
    historic structures located in cultural districts
  • Increases the cap on state residential historic
    tax credits
  • Requires local governments who designate such
    districts to report on impact to their community

Currently - for Income Producing property
  • 25 state income tax credit for costs and
    expenses of rehabilitation of historic structures
    that are in a DDD and used for commercial,
    industrial, or rental residential purposes

Currently - For Homeowners
  • May be eligible for up to 25 of rehab cost as
    credit against individual state income tax for up
    to 5 years

New Law
  • Expands eligibility of existing tax credits to
    the rehabilitation of commercial and residential
    structures located in Cultural Districts
  • Raises the cap on the residential program from 1
    to 10 million per program year

Rule Making Process
  • The Administrative Procedure Act defines the
    procedure for promulgation of administrative
  • Minimum time between the date of the first
    publication of the agencys Notice of Intent
    (NOI) to promulgate rules and the effective date
    of the rules is four months

November 07 draft and revise rules December
07 publish Notice of Intent January 08 public
hearing February 08 legislative oversight March
08 publish final rules
Cultural District Rules
  • Purpose and Authority
  • Definitions
  • Applications
  • Criteria
  • Determination Appeals
  • Reporting requirements
  • Sales Tax Exemption
  • Boundaries
  • Termination by Local
  • Termination by State

  • Local Governing Authority- the local governing
    authority of the parish or the municipality in
    which the cultural district is located, or both
    if a district is located partially in a

  • A local governing authority may submit to the
    department an application to designate and
    certify a specified geographic area as a cultural
  • In accordance with the timetable and in the
    format provided by department policy
  • Application deficiency must be addressed within
    30 days of notification

  • Revitalize a neighborhood or area  
  • Stimulate the economy 
  • Engage residents
  • Draw tourists 
  • Provide a sense of community
  • Serve as a gathering place
  • Encourage creativity
  • Strengthen community partnerships 
  • Promote the arts and support artists
  • Develop an image
  • Enhance property values
  • Capitalize on local cultural, economic and social

Reporting requirements
  • By January of each year, the local governing
    authority shall prepare and submit to the
    department an annual report on the impact of the
    certified cultural district with regard to the
    purposes of the creation of a cultural district

Sales Tax Exemption
  • Sales and use taxes imposed by the state of
    Louisiana or any of its political subdivisions
    shall not apply to the sale of original,
    one-of-a-kind works of art from an established
    location within the boundaries of a cultural

Established location
  • An established location shall not include
    transient vendors including those who sell art
    from booths or other temporary structures as
    street vendors or participants at fairs,
    festivals, or other temporary activities except
    for ongoing, incorporated events, held at least 6
    times a year in the same location

Certifying tax exempt sales
  • Vendors shall certify and document each
    tax-exempt sale of original art 
  • A description of the work of art including its
    medium and dimensions, the name of the artist,
    its date of creation, and the name, contact
    information, and qualifications of the person
    vouching for this information
  • A statement by the vendor certifying that the
    work of art meets the definition of a tax-exempt
    work of art.

Definition of Original Art/Craft
  • Art is the creation of a single, unique item,
    conceived and produced by the artist or under his
    direction, not intended for multiple or mass
  • A craft must be a single, unique item made by
    hand or with the use of necessary and appropriate
    tools, conceived and produced by the artist or
    under his direction

Eligible tax-exempt art
  • Examples include drawings created using pencil,
    charcoal, graphite, pen and ink, or a combination
    of media, but not a copy, print or reproduction
    paintings created using oil, acrylic, or other
    paint on paper, canvas, or other surface, but not
    a copy of another painting, a print, or a
  • Eligible media include drawing, painting,
    printmaking, photography, sculpture, clay,
    metals, fiber, glass, leather, wood, mixed media

Eligible tax-exempt crafts
  • Examples of eligible media include clay, glass,
    fiber, metal, wood, leather, mixed media, and
    digital installation art
  • Ineligible media products include manufactured
    items crafts made from commercial molds,
    stencils, patterns or kits imports food
    products plants dried flower arranging
    simulated stained glass china painting items
    created through mechanized processes
  • All jewelry must be handcrafted by the artist and
    shall not include stringing of manufactured beads

For more information Call
225-342-8161 Email
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