Provides for the adjustments of ad valorem millages. (See Act)
Impact
The impact of SB 165 on state laws is significant, primarily in how tax revenues are assessed and utilized. The alterations proposed by this bill would influence financial operations at both local and state levels, especially concerning budget allocations for public services funded through ad valorem taxes. This measure aims to provide taxing authorities with more flexibility while establishing boundaries to curtail excessive taxation, which could strain taxpayers.
Summary
Senate Bill 165 aims to amend the adjustment methods for ad valorem millages in Louisiana. The bill initially modifies specific sections of R.S. 47:1705, focusing on how millage rates can be increased by taxing authorities. Starting in the 2023 ad valorem tax year, taxing authorities, both elected and non-elected, can raise their millage rates, but only under certain conditions. For instance, increases exceeding the previous year's maximum authorized rate can only be enacted through a two-thirds vote following a public hearing, ensuring some level of transparency and community input.
Sentiment
The general sentiment surrounding SB 165 appears to be cautiously optimistic among supporters, who argue it offers necessary complications for raising millage rates while safeguarding taxpayer interests. However, there exists concern among various stakeholder groups regarding the potential for taxing authorities to raise taxes without adequate checks and balances. This tension indicates an ongoing debate about fiscal responsibility and community engagement in the taxation process.
Contention
One of the notable points of contention arises from fear that the bill could lead to higher taxes if taxation bodies make decisions that may not align with public sentiment. Critics are wary of the power dynamic this bill creates and highlight the importance of maintaining voter control over tax rates. In addition, with the provisions for public hearings, the effectiveness and transparency of those hearings are also a focal point of concern, questioning whether they will genuinely allow for community voices to be heard.
(Constitutional Amendment) Authorizes adjustment of ad valorem tax exempt status for certain nonprofit entities in Orleans Parish and requires downward adjustment of all affected millages to prevent any resulting increase in the amount of taxes collected (OR SEE FISC NOTE LF RV)
Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property (Items #1 and 10) (EN SEE FISC NOTE LF RV See Note)
Provides for the homestead exemption, special assessment level, and other property tax exemptions for purposes of determining ad valorem taxation of certain property (Items #1 and 10) (OR SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Provides with respect to maximum authorized millage rates and provisions authorizing increases in certain millage rates without voter approval (RR SEE FISC NOTE LF RV See Note)