St. Tammany Parish Louisiana PILOT Program
In the extremely competitive world of economic development, state and local governments of every size must utilize economic incentives to attract new businesses and retain existing ones. Because of state law restrictions on the outright donation of public funds or credit, local governments in Louisiana have a relatively limited number of options when it comes to structuring attractive economic development packages.
One of the primary tools used to address this in St. Tammany Parish are Payment-in-Lieu-of-Tax (PILOT) arrangements.
How it Works
As a political subdivision of the State of Louisiana, St. Tammany Corporation may utilize a sale-leaseback arrangement in which the economic development district acts as a conduit issuer and holds title to the project during the term of the benefit. The conduit borrower (the business) generally receives the benefits of depreciation, while being responsible for paying maintenance, operation and insurance costs on the project. However, since the conduit issuer is a governmental unit, its property is exempt from property taxes. So, while the PILOT arrangement exists, the bond-financed project is not subject to property taxes. This allows St. Tammany Corporation to negotiate a payment that covers a portion of the exempted taxes, but still presents significant savings for the business.
The PILOT Program works in similar fashion mirroring that of the Industrial Tax Exemption Program, but with greater range of application.
We are happy to explore the possibility of this tool, with suitable, high impact projects.
For more information, contact Jack Nickens, Coordinator of Business & Technical Services and Land & Sites, at 985-809-7874 or firstname.lastname@example.org.