Tag Archives: property assessment

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

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.

Jefferson and Other Louisiana Parishes 2014 Taxbills…(Excluding Orleans)

Jefferson Parish, as with most other Louisiana Parishes, recently mailed the 2014 property taxbills, keep a keen lookout for them.  The taxbill becomes delinquent if not paid by December 31, 2014. When you receive the taxbill, please feel free to send them our way for review.

Orleans Parish anticipates mailing their taxbills the last week of December, becoming delinquent if they are not paid by February 1, 2015.

Ad Valorem Assessment & Tax Watch – Update

Louisiana Amendments and Parish Propositions  

November 4, 2014 Elections

Proposed Amendment No. 6  – Passed

Act No. 870 House Bill No. 111, Regular Session, 2014, By Representative Leger The amendment authorizes the governing authority of Orleans Parish to increase the annual millage rate levied for fire and police protection, to require that the revenue from the fire and police millages be used for fire and police protection service enhancements, and to require that any increase be approved by the voters of Orleans Parish.  (Amends Article VI, Section 26(E)).  The current Orleans millage is 5.21 for fire and 5.26 for police, without applying the homestead exemption.  The proposed amendment would allow for the tax to be increased to 10 mils each for fire and police. This is a statewide amendment, which if passed, will then be proposed to the voters of the Parish of Orleans. If it passes, it is anticipated that it will then be on the December 2014 ballot for Orleans Parish.

Proposed Amendment No. 7 – Passed

Act No. 433 Senate Bill No. 96, Regular Session, 2013, By Senator Adley The amendment provides that the homesteads of veterans with a service-connected disability rating of one hundred percent unemployability or totally disabled by the United States Department of Veterans Affairs, and their surviving spouses, shall be exempt from ad valorem taxation for up to one hundred fifty thousand dollars, and that a parishwide vote shall not be required to implement this change in qualification for the exemption. (Amends Article VII, Section 21(K)(1) and (3))

Proposed Amendment No. 9 – Passed

Act No. 432 Senate Bill No. 56, Regular Session, 2013, By Senator Morrell and Representatives Barrow, Ritchie and Thibaut The amendment would exclude owners who are permanently totally disabled from the requirement that they annually certify to the assessor the amount of their adjusted gross income in order to receive the Special Assessment Level on their residences for property tax purposes. (Amends Article VII, Section 18(G)(1)(a)(iv))

 Orleans Parish Propositions

Parish of Orleans, Proposed Proposition; Law Enforcement District Proposition (Millage)       –   Failed

11/4/2014 LEDP In summary, the Law Enforcement District is geographically congruent with the Parish of Orleans, the tax proceeds would go to the Orleans Parish Criminal Sheriff’s Office, and the levy of the tax would be in the amount of 2.9 mils, minus the rate of the current tax, for a period of 10 years.  Currently, the District levies a tax of 2.9 mils which is applied toward the principle and interest payment of outstanding bond indebtedness.  As the outstanding bonds are retired, and the tax proceeds are no longer used for interest and principle payments on the debt, the Sheriff will continue to collect up to 2.9 mils in taxes.  The proceeds may be use by the Law Enforcement District for operations, maintenance and the upkeep of the parish prison and related facilities.

Institute for Economic Development & Real Estate Research – 2014 UNO Economic Outlook & Real Estate Forecast Seminars

The University of New Orleans will be hosting their 2014 Economic Outlook & Real Estate Forecast Seminars

Friday, May 9, 2014 – New Orleans

Friday, June 6, 2014 – Northshore

Additional information is available via their website available by clicking here.