Louisiana Senate Bill SB630

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Provides for the fair market value of property held for residential development for property tax purposes. (gov sig) (OR DECREASE LF RV See Note)

Impact

If enacted, SB630 will significantly impact how residential development properties are appraised in Louisiana. By establishing a fixed methodology based on purchase price, the bill may provide more predictability for developers regarding their tax liabilities, potentially promoting residential construction. The mandatory use of the Louisiana Tax Commission's guidelines for assessing properties held for residential development introduces a more specialized approach to property valuation in this sector.

Summary

Senate Bill 630 aims to amend the assessment criteria for property held for residential development, specifically with regard to its fair market value for ad valorem tax purposes. The bill proposes that the assessor should value such property at the purchase price of the land without accounting for any subsequent infrastructure improvements. This value is intended to be maintained until the last lot of the residential development is sold as a residence. Once a specific lot is improved and sold, traditional valuation methods would then be applied to that lot.

Sentiment

The sentiment surrounding SB630 appears to be supportive among real estate developers who see it as a means to stabilize property taxes and promote further residential development. However, there may be apprehensions from local governments and assessors who could view this as a limitation on their ability to determine fair market value through traditional appraisal methods. Discussions may also arise regarding the implications of separating infrastructure improvements from property valuation.

Contention

Notable points of contention around SB630 may center on whether the assessment changes justly reflect the actual value of residential properties, especially as infrastructure improvements can enhance property value. Critics may argue that the proposed changes could lead to an undervaluation of specific properties, potentially affecting local tax revenues and services funded by these taxes. The necessity for the Louisiana Tax Commission to create new guidelines in implementing the bill could also introduce complexities in the administrative process of property taxation.