The Preservation Resource Center is committed to preserving New Orleans’ historic neighborhoods and houses. Rapidly increasing property tax assessments can threaten the homeowners who have lived in their properties for decades. Amendment 6 on the Nov. 6 ballot will provide a buffer from these soaring tax assessments by spacing out the rate increases over a longer time period. The PRC supports Amendment 6.
Text of proposed Amendment no. 6:
Act 718 of the 2018 Regular Session of the Louisiana Legislature proposing to amend Article VII, Section 18(A) and (F) of the Louisiana Constitution. “Do you support an amendment that will require that any reappraisal of the value of residential property by more than 50%, resulting in a corresponding increase in property taxes, be phased-in over the course of four years during which time no additional reappraisal can occur and that the decrease in the total ad valorem tax collected as a result of the phase-in of assessed valuation be absorbed by the taxing authority and not allocated to the other taxpayers?”
Per the Riverfront Alliance, a coalition of New Orleans neighborhood associations:
What does constitutional amendment (CA) 6 do?
By law in Louisiana, tax assessors must reassess all properties at least once every four years. When property values rise in your area, you could see big increases in your assessment and, therefore, in your property taxes. Under CA 6, if you have a homestead exemption and your property assessment increases by 50 percent or more during a single assessment, this law phases in the increase in your property tax bill equally over the next four years.
Why is it necessary?
Real estate prices have increased so quickly in many places. In some neighborhoods, rapidly rising values and taxes have priced residents out of their own homes! This law, if approved by voters November 6, would soften the blow of a potentially steep increase in your tax bill. That beats being hit with a large increase all at once.
How does it work?
Let’s say your house is valued at $100,000 one year, but reassessed at $200,000 the next year. Instead of paying taxes on the full $200,000 that first year, it would phase in over four years:
- Year 1: held to $125,000 assessment
- Year 2: held to $150,000 assessment
- Year 3: held to $175,000 assessment
- Year 4: held to $200,000 assessment