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A program of the Office of the Lt. Governor providing tax exemptions and credits in locally designated districts Cultural Districts Background 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 2007 Legislation Primary Goal (modeled after DDD legislation) To revitalize communities by creating locally driven hubs of cultural activity Cultural Districts 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 Overview: 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 Application Authority 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 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 Definition of Original Art Original One-of-a-kind Visual art Conceived and made by hand of the artists or under his direction Not intended for mass production 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, 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: Complete a Sales Tax Exemption Certificate to be retained for audit 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 must 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 due Jul. 1 and Dec. 1 annually Technical assistance is available to local governments to complete applications 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 – firstname.lastname@example.org
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