HLS 10RS-3661 ENGROSSED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 1471 (Substitute for House Bill No. 1117 by Representative Greene)
BY REPRESENTATIVE GREENE
TAX/AD VALOREM TAX: Provides relative to the valuation of unoccupied residential
immovable property for purposes of ad valorem property taxes
AN ACT1
To enact R.S. 47:2323(D), relative to ad valorem taxation; to require consideration of the2
income approach for valuation of certain unoccupied residential immovable3
property; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:2323(D) is hereby enacted to read as follows: 6
ยง2323. Criteria for determining fair market value; real and personal property;7
unoccupied residential immovable property 8
* * *9
D. When performing a valuation of unoccupied residential immovable10
property held for sale by a juridical person prior to the initial occupancy of such11
property, the assessor shall consider the income approach to value, including factors12
such as the estimated sales price of the unoccupied immovable property, the13
estimated holding period needed to sell the property, expenses, including expenses14
incurred during the holding period, and the capitalization rate which includes the15
economic risks associated with the holding period. For purposes of this Section, the16
initial occupancy shall mean the first occupancy of the property by a natural person,17
as well as occupancy after substantial modification has been made to the property.18 HLS 10RS-3661 ENGROSSED
HB NO. 1471
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Greene HB No. 1471
Abstract: Requires an assessor to consider the income approach for valuation of
unoccupied residential immovable property for purposes of ad valorem taxation.
Present law provides that the fair market value of property is the price for property agreed
upon between a willing and informed buyer and a willing and informed seller under usual
and ordinary circumstances; it shall be the highest estimated price the property will bring if
sold on the open market with reasonable time allowed to find a purchaser who is buying with
knowledge of all the uses and purposes the property is best adapted to and can legally be
used.
Present law provides for the criteria for determining the fair market value of real and
personal property and requires the criteria to apply uniformly throughout the state. Further
requires fair market value of real and personal property to be determined, at the discretion
of the assessor, by following either the market approach, the cost approach, or the income
approach.
Proposed law retains present law but adds requirement that an assessor consider the income
approach when performing a valuation of unoccupied residential immovable property held
for sale by a juridical person prior to the initial occupancy. In considering the income
approach, factors such as the estimated sales price of the property, the estimated holding
period needed to sell the property, expenses incurred during the holding period, and the
capitalization rate which includes the economic risks associated with the holding period shall
be considered by the assessor.
Proposed law further provides that the "initial occupancy" of residential immovable property
shall mean the first occupancy of the property by a natural person, as well as occupancy after
substantial modification has been made to the property.
(Adds R.S. 47:2323(D))