Constitutional amendment to provide an exemption from ad valorem taxes levied on property which tax increases more than 10% than the previous year when due to required reassessment. (2/3 -- CA13s1(A))
Impact
If passed, the amendment would significantly alter how property tax increases are managed in Louisiana. Property owners would no longer be penalized with high taxes related solely to increased property valuation from reassessments, provided the increase exceeds 10%. The proposed measure seeks to enhance clarity in the tax system and provide relief for property owners by ensuring that only increases due to significant changes, like new ownership or improvements, would contribute to a tax hike.
Summary
Senate Bill 105 proposes a constitutional amendment aimed at providing an exemption from ad valorem taxes for property tax increases exceeding 10% that result solely from required reappraisal of the property. This amendment is set to become effective on January 1, 2015, and aims to alleviate the financial burden on property owners facing substantial tax hikes purely due to reassessments mandated by law. The bill requires voter approval and is scheduled for a vote on November 4, 2014.
Sentiment
Overall sentiment surrounding SB105 appears to be cautiously optimistic, as proponents express hopes that the bill will assist many citizens in maintaining their financial stability. However, there are mixed feelings, as some individuals and organizations highlight concerns about the potential impacts on state revenue and the funding of local governmental services dependent on property tax income. The discussions reflect a broader debate on balancing fair taxation with essential public services.
Contention
Notable points of contention include discussions on the fairness of exempting property from ad valorem taxes based solely on reassessment increases. Critics may argue that such an exemption could lead to under-funding essential services funded through property tax and could disproportionately benefit wealthier property owners. Additionally, there are concerns regarding how this amendment would interact with existing property tax laws and what mechanisms would ensure that revenues remain adequate for local government operations.
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 to phase out the ad valorem tax on inventory, reduce the maximum amount of the industrial property tax exemption, and provide for funding for local government. (2/3 - CA13s1(A))
Constitutional amendment to authorize the phase-in of increases in ad valorem taxation under certain circumstances. (2/3 - CA13s1(A)) (RE1 SEE FISC NOTE LF RV See Note)
Constitutional amendment to exempt from ad valorem property taxes inventory held by manufacturers, distributors, and retailers and to prohibit adjustment of millages because of the implementation of the exemption. (2/3-CA13s1(A)) (1/1/16) (OR -$517,000,000 LF RV See Note)