(New Orleans – March 14, 2023) — The Orleans Parish School Board (OPSB) would like to thank Governor John Bel Edwards for rejecting the Folgers Coffee Company's six Industrial Ad Valorem Tax Exemption Program ("ITEP") applications for industrial projects completed in New Orleans between 2018 and 2021.
During a special board meeting last Friday, OPSB members voted unanimously to pass a resolution urging Governor John Bel Edwards to reject Folgers ITEP applications.
Governor Edwards' support will keep millions of dollars intact to continue serving NOLA Public Schools (NOLA-PS) scholars with mental health services, extracurricular activities, and provide an increase in teacher pay. This preservation of funds will be used to assist students in reaching their full potential and help fulfill the district's vision of providing a high quality education.
In 2016, by Executive Order, the governor gave local taxing authorities, including the Orleans Parish School Board, the authority to determine whether significant property located within its jurisdiction would be exempt from local taxation. The order further stipulated the relevant governing Parish Council, Police Jury, Municipal Council, School Board, and Sheriff by resolutions could each signify whether they were in favor of a project(s) and the project(s) would be approved.
In accordance with the executive order, amended in 2018, the OPSB adopted Resolution 09-18, outlining its guidelines to govern the approval of ITEP projects under its jurisdiction in July 2018. Two months later, OPSB amended its resolution to include revising its definition of "distressed region" and to correct a statutory reference concerning the criteria for evaluation of ITEP applications.
Shortly after, Folgers submitted a total of six ITEP applications for the Board's consideration for industrial projects it competed in 2018 and 2021. In December 2020, OPSB passed six resolutions rejecting Folgers' six ITEP applications based on its guidelines to approve ITEP projects.
On February 21, 2020, the Louisiana Board of Commerce and Industry (BCI) adopted a resolution concerning the ITEP program, in conflict with the ITEP rules set by the local governing authorities. It stated local governing bodies could not contradict or conflict with the BCI rules for an exemption.
As a result, Folgers did not list its property as taxable or advise the Orleans Parish Assessor that the ITEP applications were denied. When the Assessor learned that the six ITEP applications were denied, two years later, he acted to add Folgers' property to the Orleans Parish tax roll. Folger sued the Assessor and the Louisiana Tax Commission, arguing that the Board's decision was not "final" because it could appeal the decision to the Board of Commerce and Industry under the February 21, 2020 BCI Resolution.
On March 1, 2023, the BCI considered six appeals lodged by Folgers concerning its ITEP applications. During that meeting, the BCI decided that all millages flowing to OPSB in all projects would be included in Folgers' ITEP contracts because OPSB's rejection of Folgers' application was based in part on guidelines that were more stringent than the BCI's. In essence, the BCI overturned OPSB's rejection of Folgers' ITEP applications.
The Louisiana Constitution requires the Governor to approve all ITEP contracts, and Governor Edwards exercised his constitutional authority to formally reject all six Folgers ITEP applications and disapprove Folgers' ITEP contracts.
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About NOLA Public Schools: NOLA Public Schools (NOLA-PS) is the public school district for Orleans Parish. It includes the district's administration and elected school board, known as the Orleans Parish School Board (OPSB). NOLA-PS currently oversees 72 public schools and is led by Superintendent Dr. Avis Williams, the first woman in the District's 181 years to serve as its permanent superintendent.
For more information, visit www.nolapublicschools.com. For updates, follow NOLA Public Schools on Facebook @NOLAPublicSchools, Instagram @nolaps and Twitter @NOLAPSchools.