(Constitutional Amendment) Limits the ad valorem tax exemption for nonprofit corporations or associations for certain property used for commercial purposes in the city of New Orleans or Orleans Parish (OR +$430,000 LF RV See Note)
Impact
The proposed amendment would significantly change the landscape of property tax exemptions for nonprofits in New Orleans. Under current laws, properties owned by nonprofit organizations can receive ad valorem tax exemptions based on their intended use. However, HB 473 would introduce new criteria that could reduce the financial benefits for nonprofits owning vacant properties or those not fully aligned with their exempt purposes. This could lead to increased tax burdens for certain nonprofit organizations if they cannot demonstrate their properties meet the new requirements.
Summary
House Bill 473 proposes a constitutional amendment that specifically addresses the ad valorem property tax exemption for nonprofit corporations or associations operating in the city of New Orleans or Orleans Parish. The bill stipulates that the exemption will not apply if the property is vacant or not used exclusively for the purposes that warrant the exemption, which in this context refers to activities that are charitable or otherwise aligned with the mission of the nonprofit organization. This amendment aims to create stricter standards for nonprofit property tax exemptions in the specified locality.
Sentiment
Sentiment around HB 473 appears to be mixed among stakeholders. Supporters of the bill may argue that it will ensure that tax exemptions are only granted to actively utilized nonprofit properties, thereby maximizing the public benefit of such exemptions. Conversely, opponents may view the bill as unnecessarily restrictive, potentially jeopardizing the financial stability of nonprofit organizations struggling to manage vacant properties, especially in a city where the economic climate can affect occupancy rates. The discourse around the bill reflects broader discussions on balancing tax policy with supporting nonprofit missions.
Contention
Points of contention surrounding HB 473 primarily relate to its potential impact on nonprofit operations. Critics argue that the bill could disproportionately affect nonprofits that often rely on vacant properties for future developments or meet requirements that may change due to economic conditions. Additionally, there are concerns that these restrictions could lead to increased financial pressures on organizations attempting to contribute positively to local community needs. The bill’s focus on the specifics of property use raises questions about the broader implications for charitable activities and the support services that nonprofits provide.
(Constitutional Amendment) Authorizes the governing authority for the city of New Orleans or Orleans Parish to reduce a portion of ad valorem tax exemptions for municipal taxes (OR +$2,150,000 LF RV See Note)
(Constitutional Amendment) Prohibits ad valorem tax exemptions for property owned by nonprofit organizations used for commercial purposes (OR SEE FISC NOTE LF RV)
(Constitutional Amendment) Limits the amount of the increase in the assessed value of certain immovable property in Orleans Parish following reassessment of property for purposes of ad valorem taxes (OR SEE FISC NOTE LF RV)
Constitutional amendment to authorize ad valorem tax exemptions in Orleans Parish to promote affordable housing. (2/3 - CA13s1(A)) (EN DECREASE LF RV See Note)
(Constitutional Amendment) Limits the amount of the increase in the assessed value of certain immovable property in Orleans Parish following reassessment of property for purposes of ad valorem taxes (EN SEE FISC NOTE LF RV)
(Constitutional Amendment) Establishes eligibility requirements for the exemption for property owned or leased by a nonprofit organization in Orleans Parish, authorizes adjustment of the status and extent of the exemption by the Orleans Parish governing authority, and requires downward adjustment of all affected millages to prevent any resulting increase in the amount of taxes collected (RE SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Restricts eligibility of nonprofit organizations for property tax exemptions for residential property found to endanger public health or safety (EN SEE FISC NOTE LF RV See Note)