End fair market assessments NOW!
When locals are priced out of their neighborhoods by higher taxes on their homes and when deeper pockets come in and scoop up our property, that will be the end of New Orleans… Sign PetitionSign Petition
The result of this is devastating. No rent will be at a livable wage and no artist, musician, service industry worker or middle-income family will be able to afford to live here. This is no joke. This is happening right now.
And….… it all stems from how we assess property.
OK First we have to understand what a few key words.
1. Ad valorem- tax based on the assessed value of an item
2. Fair Market Value- is the price the item would sell for on an open market
The Louisiana Tax Commission and the assessor gather the fair market value of our homes and land uniformly throughout the state every 4 years. This is done by a computer algorithm that is not always correct in determining each individual home's worth (um yeah.. DUH). However there are exemptions for these tax increases… like if your 65 and older, if you are disabled, if you are a veteran, if you are a spouse of an officer that died in the line of duty.. and so on and so on.
So let's say you bought your home in 2007. Back then your taxes were $900.00. Each year the taxes increase at a pretty steady rate. You get your tax bill for 2019 and they are a staggering $3600. That's a pretty steep climb from 2007, but you say nothing and pay it anyway. Then comes the 2020 assessments, with an increase of $135,000.00 on your home even though you've had no improvements since 2007! You're left confused and angry.
The answer is fair market value in your neighborhood! This is due to all the new homes and the Airbnb effect on our neighborhoods.
So, WHAT DO WE DO?
We need to change the laws at the state level. We need to get every senator, mayor and council member and citizen on board with the following.
1. The assessed value of a property is limited to an increase no greater than 2% each year based on its value when purchased, unless a change in ownership or new construction occurs. The maximum 2% increase per year continues to be applied until a change in ownership or new construction occurs.
2. Additional property taxes may be approved for schools or local projects, which can vary amongst communities and bring the tax rate higher than one percent. These additional property taxes change annually and are determined by voters in each tax rate area.
3. Individuals and corporations that these new tax laws will not apply to and who will continue to follow the fair market assessments are residential properties, agricultural land, and owners of commercial and industrial properties with combined value of $3 million or more.
When a change in ownership occurs, whether full or partial, real property is re-assessed at its current market value as of the date of transfer. This establishes a new base year value for both the property's land and improvements. If only a partial change in ownership occurs, the original base year value is retained for the part of ownership that does not change, and a new base year value is created for only the part of ownership that has changed.
When new construction occurs, it is re-assessed at current market value as of the date of completion. This establishes a new base year value for the property's newly constructed improvements only. If construction is deemed new or substantially equivalent to new, the base year value for improvements is established entirely on the date of construction completion. If construction is deemed an addition, the original base year value for improvements remains and a new base year value on the date of construction completion is added. The base year for land is unchanged by new construction.