Terms Used In Louisiana Constitution Art. 9 Sec. 9

  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.

Section 9.(A)(1)  Creation.  The First Use Tax Trust Fund is hereby created and established in the state treasury as a special and irrevocable trust fund for the deposit of the proceeds, and interest derived therefrom, of the first use tax imposed by law in 1978 or thereafter and any other tax imposed by law which would have the effect of imposing any new or alternative tax on uses of those resources subject to the tax levied by the first use tax.  The treasurer shall pay into the state general fund, from the total proceeds of the first use tax, as imposed by law in 1978 or thereafter such amounts as are necessary to fully reimburse the state general fund for tax credits granted in 1978 against that tax pursuant to Part I-B of Chapter 6 of Title 47 of the Louisiana Revised Statutes.  The remainder of such tax proceeds shall be credited to the following accounts within the First Use Tax Trust Fund and shall not be deposited into the Bond Security and Redemption Fund or the general fund.

(2)  Distribution; debt accounts.  Seventy-five percent of the proceeds, and interest derived therefrom, shall be deposited into the following accounts:

(a)  Initial Proceeds Account.  From this portion of the initial proceeds of the tax, the sum of five hundred million dollars shall be maintained in an account within the First Use Tax Trust Fund in the state treasury to be known as the “Initial Proceeds Account”.  Monies in the Initial Proceeds Account shall be invested, and the investment earnings shall accrue to that account.  Except for investment and except as provided in Paragraph (C), monies on deposit in the Initial Proceeds Account shall not be used.  If the balance of the Initial Proceeds Account at any time is less than five hundred million dollars, then an amount from the next proceeds of the tax shall be credited to the Initial Proceeds Account until there is a balance therein of five hundred million dollars.

(b)  Debt Retirement and Redemption Account.  All proceeds of this portion of the tax over and above the amount required to be maintained in the Initial Proceeds Account shall be maintained in an account in the First Use Tax Trust Fund to be known as the “Debt Retirement and Redemption Account”.  Monies in the Debt Retirement and Redemption Account shall be invested and the investment earnings shall accrue to that account.  Except for investment, monies on deposit in the Debt Retirement and Redemption Account shall be used only to purchase, in advance of maturity, on the open market any outstanding obligations of the state, or to call, pay or redeem in advance of maturity any outstanding bonds, notes or other evidence of state debt, or both.  No purchase or redemption of state debt shall occur with the monies unless the purchase or redemption results in interest savings to the state.  The methods used for retiring such future debt shall be determined by the state treasurer, with concurrence of two-thirds of the members of the State Bond Commission acting in open session.

(3)  Distribution; conservation account.  Twenty-five percent of the proceeds, and interest derived therefrom, shall be deposited into the following account:

(a)  Barrier Islands Conservation Account.  Twenty-five percent of the proceeds of the tax shall be maintained in an account in the First Use Tax Trust Fund to be known as the “Barrier Islands Conservation Account”.  Monies in the Barrier Islands Conservation Account shall be invested and the investment earnings shall accrue to that account.  Except for investment, monies on deposit in the Barrier Islands Conservation Account shall be used exclusively to fund capital improvement projects designed to conserve, preserve and maintain the barrier islands, reefs, and shores of the coastline of Louisiana.  Only such capital improvements contained in the comprehensive capital budget adopted by the legislature each year shall be funded.

(B)  Investments.  The state treasurer shall invest all monies on deposit in the accounts established under Paragraph (A) in accordance with the law governing the investment of idle funds of the state.

(C)  Use of Investment Earnings of Initial Proceeds Account.  If in the judgment of the state treasurer the best interest of the state would be served, and only if the Debt Retirement and Redemption Account is depleted or otherwise not funded, the treasurer may, with concurrence of two-thirds of the members of the State Bond Commission, acting in open session, expend the investment earnings which have accrued in excess of five hundred million dollars in the Initial Proceeds Account for any purpose for which the Debt Retirement and Redemption Account may be used.

(D)  The funds deposited in the First Use Tax Trust Fund shall be considered escrowed and shall not be used for the purposes enumerated herein until the proceeds of the first use tax are determined to be available for such uses by the treasurer with concurrence of two-thirds of the members of the State Bond Commission, acting in open session.  During the time these funds are escrowed such funds may be ordered remitted upon final action by a court of last resort, with the interest earned thereon, as provided by law, if the tax is held to be invalid as to any taxpayer who has paid the tax.

Added by Acts 1978, No. 797, §1, approved Nov. 7, 1978, eff. Dec. 12, 1978.