Supreme Court of Louisiana Issues Ruling

In Low Income Housing Tax Credit (LIHTC) Dispute

March 15, 2018

On March 13, 2018, the Supreme Court of Louisiana issued a ruling regarding Low Income Housing Tax Credit (LIHTC) Property located in the City of New Orleans. In the matter titled Errol G Williams, Assessor, Parish of Orleans v. Opportunity Homes Limited Partnership and Louisiana Tax Commission, the LA Supreme Court ruled that the Louisiana Tax Commission’s (LTC) decision to use the Income Approach in valuing LIHTC property was the correct method of valuation. The dispute involved the tax years 2014 and 2015 for scattered site rent restricted property consisting of 32 buildings and 54 units that are used as low income family housing.

This decision reverses the appellate court and upholds the decision of the district court thereby reinstating the LTC’s lower values. Although the Court ruled the Assessor can use a market approach when valuing LIHTC property, in the instant case, any analysis of comparable market sales was absent from the record and  “…the preponderance of the evidence supported the Commission’s determination that the income approach was the appropriate method…”.  It further notes that the LTC did not err in its ruling nor did it act in excess of its authority.

You can access and read it by clicking here.

Ad Valorem Assessment & Tax Watch – Update November 21, 2016 Ballot

November 21, 2016 Ballot

Property Tax Related Constitutional Amendments and Local Propositions

 Calcasieu

  • Waterworks Sub. No. W, Wd.3, Dist. No.12 – 10 Mills – BOC – 10 Yrs.

 East Baton Rouge

  • Brownsfield Fire Protection Dist. No. 3 – 10 Mills – MC – 10 Yrs
  • Fire Protection District 6 – 5 Mills – BOC – 9 Yrs.
  • Shenandoah Estates Crime Prev. & Imp. Dist. – $50 Parcel Fee – BOC – 8 Yrs.
  • Southern Heights Nbrhd. Crime Prev. & Imp. Dist. – $100 Parcel Fee – BOC – 10 Yrs.
  • Woodlawn Estates Crime Prev. & Imp. Dist. – $150 Parcel Fee – BOC – 10 Yrs
  • City of Baker – 5% Hotel Tax – CC – Perp

 Ouachita

  • Road Lighting District No. Forty-Six – $75 Service Charge – PJ – 10 Yrs.
  • Town of Sterlington (Police Dept. Millage) – 3.5 Mills – M&BOA – 15 Yrs.
  • Town of Sterlington (Rec. Millage) – 3.5 Mills – M&BOA – 25 Yrs.
  • Town of Sterlington (Rec. S&U) – .5% S&U – M&BOA – Perp.

Rapides

  • Buckeye Recreation District – 6.09 Mills – BOC – 10 Yrs.
  • Fire Protection District No. 10 – 22.59 Mills – PJ – 10 Yrs.
  • PW Sr. Citizens Tax Cont. – 1.06 Mills – PJ – 10 Yrs.
  • Road District No. 3-A Maintenance – 32 Mills – PJ – 10 Yrs.

St. Tammany

  • Fire Protection District No. 7 – 5.21 Mills – BOC – 10 Yrs.
  • Gravity Drainage District No. 5 – .50 Mills – BOC – 10 Yrs.
  • PW Florida Parishes Juv. Justice Dist. – 3 Mills – Fla. Par. Juv. Justice Comm. – 10 Yrs
  • Recreation District No. 7 – 3.98 Mills – BOC – 10 Yrs.
  • Village of Folsom – .5% – M&BOA – 10 Yrs.

For additional information regarding these propositions click here, or contact us. 

Ad Valorem Assessment & Tax Watch – Update

October 24, 2015 Ballot

Property Tax Related Constitutional Amendments and Local Propositions

Statewide

Constitutional Amendments ACT 470

  • CA NO. 4 (Act 470 – HB 360) – Property Tax Exemption for Public Land/Property

If passed, this constitutional amendment would remove the property tax exemption for public lands and other public property owned by another state or a political subdivision of another state.

Parish and Precinct Specific

Calcasieu

  • Waterworks Dist. No. 10 of Wd. 7 – 15 Mills – BOC – 10 Yrs.
  • Gravity Drainage Dist. No. 4 of Ward 3 – 5.79 Mills – BOC – 10 Yrs.
  • Gravity Drainage Dist. No. Five of Ward Four – 4.78 Mills – BOC – 10 Yrs.
  • Gravity Drainage Dist. No. Eight of Ward One – 11.04 Mills – BOC – 10 Yrs.
  • Community Ctr. & Playground Dist. No. 4 of Wd. 1 – 2.0 Mills – BOC – 10 Yrs.
  • Houston Rvr. Wtrwrks. Dist No. 11 of Wds 4 & 7 – 5.51 Mills – BOC – 10 Yrs.
  • Wd. Six Fire Prot. Dist. No. One – 12.25 Mills – BOC – 10 Yrs.

East Baton Rouge

  • PW Public Library System – 11.1 Mills – Metro Council – 10 Yrs.
  • Downtown Development District – 10 Mills – Metro Council – 5 Yrs.  (EBR DDD additional information)
  • Cons. Sch. Dist. No. 1 Prop. No. 1 – .72 Mills – SB – 10 Yrs
  • Cons. Sch. Dist. No. 1 Prop. No. 2 – 1.04 Mills – SB – 10 Yrs.
  • Cons. Sch. Dist. No. 1 Prop. No. 3 – 5.99 Mills – SB- 10 Yrs
  • City of Zachary – 5% Tax – CC – Perp. (Hotel Occupancy Tax)

For additional information regarding these propositions click hereor contact us. 

 

Institute for Economic Development & Real Estate Research – 2015 UNO Economic Outlook & Real Estate Forecast Seminars

The University of New Orleans will be hosting their 2015 Economic Outlook & Real Estate Forecast Seminars

New Orleans – Friday, May 8, 2015

Northshore  – Friday, June 12, 2015

Additional information is available via their website, please visit http://www.realestate.uno.edu

Ad Valorem Assessment & Tax Watch – Update

2015 Louisiana Legislative Session

The 2015 Louisiana Legislative Session includes several proposed Senate and House Bills which may impact ad valorem property assessments and taxes. A few of the more salient ones are:

House Bill 635 / ACT 126

Eliminates eligibility of all projects with a NAICS code of 44, 45, or 722 which includes is all retail, restaurants and drinking places. The bill is effective for all contracts entered into after July 1, 2015. However, projects that have filed advanced notification prior to July 1, 2015 will still be eligible under current law, provided the related claim is filed on or after July 1, 2016.

This Act supercedes the provisions of the Act that originated as House Bill 466.

House Bill 466 / ACT 114

Eliminates eligibility of all projects with a NAICS code of 44, 45, which is all retail, restaurants and accommodations. The bill is effective for all contracts entered into after July 1, 2015. However, projects that have filed advanced notification prior to June 10, 2015 will still be eligible under current law but will only be eligible to apply for benefits after July 1, 2016.

House Bill 606 – Not Enacted Into Law

Terminates all tax credits beginning Jan. 1, 2018, and repeals tax credits that have already expired. This would include, but not be limited to, those tax credits associated with the LA Enterprise Zone, Job Tax Credits, Motion Picture.

Senate Bill 125 – Not Enacted Into Law

Reduce 10-Year Industrial Tax Exemptions originally granted before January 1, 2017, to 60% of the property originally exempted and extend the term for an additional two years.

House Bill 362 – Not Enacted Into Law
Reduce 10-Year Industrial Tax Exemptions from 100% to not exceeding 85%, and the term of the contract not to exceed 8 years.

House Bill 236 – Not Enacted Into Law
Exempts items constituting business inventory from ad valorem property tax.
Please note that there are several bills being introduced which have a similar objective.

House Bill 360 – Becomes Act No. 470
Specifies that the ad valorem property tax exemption for public lands and property means lands and property of this state and its political subdivisions. Presently, the constitution authorizes the imposition of ad valorem property taxes by local governments, and provides an exemption from ad valorem property tax for public lands and other public property used for public purposes.
The proposed amendment changes the present constitution by specifying that the exemption is for public lands and other public property of the state of La. and its political subdivision.

House Bill 59 – Not Enacted Into Law
Increases the homestead exemption from $75,000 to $100,000 of value of the property and requires adjustment of the exemption after a statewide reappraisal to reflect changes in the Consumer Price Index.

We will be following these bills, along with several others, and provide updates as warranted. If you have any questions on how the proposed legislation may impact your specific situation, please don’t hesitate in contacting us.