A program of the Office of the Lt. Governor

providing tax exemptions and credits in locally designated districts

Cultural Economy Initiative 144,000 jobs pre Katrina and Rita in 2005 Mt. Auburn Associates Tax incentive research – Feb. 2007

artist-based incentives industry-based incentives place-based incentives

Cultural Districts Background

2007 Legislation

Primary Goal

(modeled after DDD legislation)

To revitalize communities by creating locally driven hubs of cultural activity

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 good

Cultural Districts

Allows local governments to designate cultural districts for the purpose of revitalization Tax incentives encourage renovations and commerce based on local culture Benefits may include increased occupancy, commerce, jobs, and a sense of community identity Requires local governments who designate such districts to report on impact to their community

Cultural Districts Overview:

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 municipality. LGA may designate authority related to application and reporting responsibilities

Application Authority

Tax Incentives

Expands eligibility of existing state historic tax credits for the rehabilitation of commercial and residential structures located in Cultural Districts

State and local sales taxes* 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 District.

* Check local tax laws for restrictions

Original One-of-a-kind Visual art Conceived and made by hand of the artists or under his direction Not intended for mass production

Definition of Original Art

Eligible Visual Arts and Crafts

Include but not limited to drawing, painting, sculpture, clay, ceramics, fiber, glass, leather, metal, paper, wood, or mixed media; and

Limited numbered editions (up to 100) of lithographs, photography, silk screen, intaglios, etching, graphic design, giclees, installation art, light sculpture, video production, and wearable art

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.

Business Inventory Each Cultural District shall create and

maintain a Business Inventory List all active businesses that have

occupational licenses and report revenue from sales of services and/or products

The Inventory will facilitate annual Louisiana Department of Revenue reports showing the total revenue generated and total amount of estimated eligible tax exemptions claimed in each Cultural District.

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 related to the criteria presented in the application.

Cultural Districts Process Applications opened on May 1, 2008 Technical assistance is available to local

governments to complete applications Applications due Jul. 1 and Dec. 1

annually Panel review/ OCD Assistant Sec.

decision Certify Cultural Districts within 90 days

of application CRT provide ongoing support for

program implementation

For more information:www.crt.state.la.us/culturaldistricts

Call – 225-342-8161

Email – ghamilton@crt.state.la.us