Industrial Tax Exemption Program
Administration Processes to Implement Resolution 09-18
Budget and Finance Committee
October 9, 2018

 Context and Objectives
On July 19 and September 20, 2018, the Orleans Parish School Board respectively
passed and made technical amendments to Resolution 09-18.

Context

This resolution articulates a high-level process for OPSB to use to review businesses
that apply for a tax exemption under the Industrial Tax Exemption Program (ITEP). It
also details the criteria that the School Board will utilize to determine whether or not
the Board will approve an applicant for such a tax exemption.
In recent months, the district administration has developed internal processes to
implement the Board’s resolution.
1. Review the process and criteria included in OPSB Resolution 09-18.

Objectives

2. Share details on the administrative processes and procedures that the
administration will use to implement Resolution 09-18.
2

 Overview of OPSB Resolution 09-18
Slide 1 of 2: Key Details on Process

• Administration monitors ITEP applications on state Board of Commerce and
Industry website monthly.
• OPSB provides public notice of intent to approve or reject applications.
• OPSB uses formal board resolutions to approve or reject each application within
60 days of the Board of C & I “taking action on an application”.

3

 Overview of OPSB Resolution 09-18
Slide 2 of 2: Criteria for Applications to Meet
OPSB shall only approve applications that meet all of the following:
1. Business is located in a distressed region – which is further defined as a census tract block group
that is below the state median per capita income, based upon the latest five-year estimate from the
American Community Survey, as conducted by the United States Census bureau – or an Enterprise
Zone, as defined by the Enterprise Zone Program under Louisiana Economic Development.
2. The jobs created as a result of the capital project must meet the job and payroll requirements for
eligibility for the Louisiana Quality Jobs Rebate program.
3. At least 35% of net new hires will reside in Orleans Parish as defined by Hire NOLA statue §70-498, or
are/have attended Orleans Parish public schools within the last three (3) years, including current
students who may be offered paid internships.
4. Construction on the capital project for which a tax exemption is being sought has not commenced
prior to gaining approval from the Orleans Parish School Board.
4

 Administrative Processes to Implement Resolution 09-18
Slide 1 of 2: General Timeline
Through coordination with the state Board of Commerce and Industry, the district administration
has created internal processes to implement resolution 09-18.
Timeline

Step

Prior to the Start of
Construction on the Project

1. Applicant applies to the Louisiana Board of Commerce and Industry for an ITEP
exemption.

Following Board of Commerce
and Industry Approval

2. LA Board of Commerce and Industry notifies OPSB of approved applicants and
passes application information to OPSB for review.
3. OPSB adds the application to its upcoming Board meeting agenda.

Within 30 days of step 2

Within 60 days of step 2

4. District administration reviews application against OPSB criteria and, as needed,
contacts applicant for additional information.
5. District administration provides public notice, identifying whether or not the
application meets all of OPSB’s criteria.
6. OPSB includes the applicant on its upcoming Board meeting agenda and approves or
denies the applicant as part of a board resolution.
5

 Administrative Processes to Implement Resolution 09-18
Slide 2 of 2: Activities for Reviewing Applications against Criteria
Criteria

Activities

Data Sources

1. Distressed
Region or
Enterprise Zone

• Review application address

• U.S. American Community
Survey

• Determine block group of address and median
income
• Determine if address is in an Enterprise Zone

• Louisiana Economic
Development database

2. Quality Jobs in
• If relevant information is not in the application,
Line with Louisiana
contact applicant to verify that new jobs will
Quality Jobs
meet the qualify jobs program.
Program

• Applicant

3. New Hires as
NOLA Residents

• If relevant information is not in the application,
contact applicant to verify that new jobs will
meet the qualify jobs program.

• Applicant

4. Construction
Not Yet
Commenced

• Review construction start date included in the
application

• Application materials
from LA Board of
Commerce and Industry 6

 Moving forward . . .

Each month that we receive a new application:
1. District administration will review the application against OPSB’s criteria.
2. OPSB will have the application included on its Board meeting agenda(s).

7

 THANK 

0

ORLEANS,