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Regular Session, 2011
HOUSE RESOLUTION NO. 86
BY REPRESENTATIVE LEGER
A RESOLUTION
To urge and request the House Committee on Municipal, Parochial and Cultural Affairs to
study the impact of the homestead exemption, nonprofit exemption, and other
property tax exemptions on local government revenue and to report its findings to
the House of Representatives by February 1, 2012.
WHEREAS, in 1934, as part of the state of Louisiana's response to the Great
Depression, Louisiana voters approved a constitutional amendment creating a homestead
exemption; and
WHEREAS, the constitutional amendment also directed the Louisiana Legislature
to create the Property Tax Relief Fund to offset local government revenue losses from the
homestead exemption; and
WHEREAS, in 1972, a federal court found that manipulations of assessments and
millage rates at the local level were resulting in an arbitrary and inequitable distribution of
state funds, in violation of the Equal Protection Clause of the United States Constitution, and
directed the state to come up with a new distribution plan; and
WHEREAS, in 1972, Louisiana voters amended the state constitution to replace the
Property Tax Relief Fund with the Revenue Sharing Fund; and
WHEREAS, the constitutional amendment required the legislature to appropriate a
minimum of eighty million dollars a year for the Revenue Sharing Fund; and
WHEREAS, in 1974, Louisiana voters approved a new state constitution which
increased the appropriation for the Revenue Sharing Fund to a minimum of ninety million
dollars a year; and
WHEREAS, in 1974, the annual appropriation of ninety million dollars was adequate
to offset local government revenue losses from the homestead exemption; and
WHEREAS, in addition to the homestead exemption, the state constitution exempts
property owned by a wide array of nonprofit entities, including those organized and operated ENROLLEDHR NO. 86
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exclusively for religious, charitable, health and welfare, fraternal, or educational purposes,
labor unions, and lodges or clubs; and
WHEREAS, the loss of revenue caused by the homestead exemption has continued
to grow over the years, and yet the Louisiana Legislature continues to appropriate to the
Revenue Sharing Fund only the minimum ninety million dollars a year; and
WHEREAS, local governments face many challenges due to the loss of revenue
caused by the homestead exemption and the nonprofit exemption, and this is particularly true
in the city of New Orleans as the homestead exemption also applies to municipal taxes; and
WHEREAS, a stable, long-term source of revenue to properly fund government
operations is essential to ensure the public safety, sanitation, recreation, and other vital city
services; to promote health and well being of youth and families; to create well-paying jobs
and provide equal access to economic prosperity; and to create sustainable communities; and
WHEREAS, disparities within the current tax structure must be eliminated in due
course to ensure that no particular group or individual bears an unfair tax burden; and
WHEREAS, tax policies need to be competitive in order to attract residents and
businesses; and
WHEREAS, reforms are needed in order to bring greater fairness, equity, and
competitiveness to the current tax structure; and
WHEREAS, the Tax Fairness Commission was created by the Honorable Mitchell
J. Landrieu, mayor of the city of New Orleans, to review the current tax system; and
WHEREAS, the commission recommended the following:
(1) The Louisiana Legislature be informed of problems created by the loss of
revenue due to the homestead exemption and the legislature's failure to properly increase
appropriations to the Revenue Sharing Fund to offset the adverse impact on local
governments.
(2) The Louisiana Legislature place before the voters a constitutional amendment
that would redefine and narrow the property that can be considered tax-exempt in a manner
more consistent with what is done in other states.
(3) The Louisiana Legislature place before the voters a constitutional amendment
that would allow local governments more control concerning property tax exemptions for
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(4) The Louisiana Legislature place before the voters a constitutional amendment
that reverses certain court decisions regarding the acceptable uses of exempt property owned
by a nonprofit.
THEREFORE, BE IT RESOLVED that the House of Representatives of the
Legislature of Louisiana requests the House Committee on Municipal, Parochial and
Cultural Affairs to study the impact of the homestead exemption, nonprofit exemption, and
other property tax exemptions on local government revenue.
BE IT FURTHER RESOLVED that the committee shall specifically solicit the input,
recommendations, and advice from those who can provide relevant information and
suggestions to the committee based upon their expertise and experience, including but not
limited to the following:
(1) The Louisiana Association of Nonprofit Organizations.
(2) The Louisiana Association of United Ways.
(3) Tulane University.
(4) Xavier University.
(5) Catholic Charities.
(6) The Archdiocese of New Orleans.
(7) Loyola University.
(8) The Louisiana Hospital Association.
(9) The city of New Orleans.
(10) The Lighthouse for the Blind in New Orleans, Inc.
(11) The National World War II Museum.
BE IT FURTHER RESOLVED that all departments, boards, agencies, officers, and
institutions of the state and all subdivisions thereof shall cooperate with the committee in
providing information to assist the committee in carrying out its responsibility pursuant to
this Resolution.
BE IT FURTHER RESOLVED that the committee shall report the results of its study
and its recommendations, including proposed legislation, to the House of Representatives
by February 1, 2012.
SPEAKER OF THE HOUSE OF REPRESENTATI VES