(Constitutional Amendment) Provides relative to the calculation of certain persons' income for purposes of determining eligibility for the special assessment level for property receiving the homestead exemption (OR SEE FISC NOTE LF RV)
Impact
If enacted, the bill would significantly impact the existing laws governing property tax assessments, particularly for individuals aged 65 and over, veterans, and those with disabilities. The proposed changes call for adapting the income eligibility calculation annually based on the Consumer Price Index beginning with the 2026 tax year. Such adjustments may enhance access to the special assessment for individuals whose financial circumstances fluctuate significantly and could help reduce tax burdens for qualifying homeowners in Louisiana. This legislative shift also emphasizes the necessity for legislative discretion over fixed constitutional mandates for income calculations.
Summary
House Bill 402, proposed by Representative Galle, seeks to amend Article VII, Section 18(G)(1)(a)(ii) of the Louisiana Constitution regarding the eligibility criteria for the special assessment level related to the homestead exemption for property taxes. The main focus of this bill is to change the method used to calculate the adjusted gross income (AGI) for individuals who file their taxes as married filing separately. Currently, eligibility for the special assessment level, which prevents increases in property tax assessments for qualifying individuals, is limited to those whose income does not exceed $100,000 and is determined based on individual returns when filing status is separate. The amendment intends to allow the legislature to define how the AGI is calculated in these circumstances instead of being constitutionally mandated, which may provide increased flexibility in determining eligibility for tax breaks.
Sentiment
Discussions surrounding HB 402 appear to be mixed. Proponents argue that this amendment could simplify the process for individuals seeking the special property tax assessment by allowing lawmakers to set a more practical income calculation method. They see the change as a means to adapt to the evolving economic landscape through inflation adjustments. Conversely, critics of the bill may express concern over potential ambiguity in legislative definitions or the loss of established protections that the existing system affords homeowners. The tension between maintaining constitutional safeguards and introducing flexibility for governance reflects broader debates about taxation policy and homeowner support.
Contention
One notable point of contention involves the implications of allowing the legislature to set income calculation methods, as this opens the door for future adaptations that might not align with the initial spirit of the homestead exemption intended to protect vulnerable populations. There is fear that convenience may override necessary protections established for certain marginalized groups, particularly elderly and disabled individuals. Additionally, the requirement to vote on the proposed constitutional amendment during the statewide election highlights the potential for public debate and differing perspectives among constituents regarding tax policy and the impact on social equity.
(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)
(Constitutional Amendment) Provides with respect to the applicability of the additional property tax exemptions for certain veterans with disabilities (EG SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Phases-in, over a four year period, a property tax exemption for items constituting business inventory (OR -$444,000,000 LF RV See Note)
Constitutional amendment to phase out the tax on inventory and establish the maximum allowable exemption for the industrial property tax exemption program. (2/3 - CA13s1(A)) (EG SEE FISC NOTE GF RV See Note)
Constitutional amendment to authorize the local governing authority of each parish to provide a limited ad valorem tax exemption for qualified first responders. (2/3 - CA13s1(A)) (EN DECREASE LF RV See Note)
Provides with respect to the applicability of the additional property tax exemptions for certain veterans with disabilities (EN SEE FISC NOTE LF RV See Note)
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.