Frequently Asked Questions
Q. How are my property taxes determined?
A. To find the value of any piece of property the assessor must first know:
------ the selling price of similar properties
------ the cost to replace it today
------ how much it takes to operate and keep it in repair
------ what rent it may earn
------ and many other economic factors affecting its value, such as the current rate of interest charged for borrowing the money to buy or build similar properties.
Q. How often is my property reassessed?
A. By law, properties should be reassessed every four years. However, if there has significant change in a particular neighborhood or market sector, assessments can be adjusted accordingly.
Q. Will my taxes automatically go up?
A. No, property taxes do not automatically go up.
Q. What Causes Property Values To Change?
A. Property's value can change for many reasons. The most obvious reason is that physical changes may have been made to the property such as additions, improvements, or major damage. The most frequent cause of change in value is a change in the market. The assessor does not create value. People make value by their transactions in the market place.
Q. What is a Homestead Exemption and when can I file my application?
A. In order to qualify for homestead exemption, one must own and occupy the house as his/her primary residence. Regardless of how many houses are owned, no one is entitled to more than one homestead exemption, which is a maximum of $7,500 of assessed value. If you change primary residence, you must notify the assessor. It is advisable to go in to the assessor's office and apply for homestead exemption as soon as you purchase and occupy your home.
The Homestead Exemption Application can be filed at anytime AFTER the purchase of your home, however, in order for you to receive an exemption for the current year you must file before December 31st. To qualify for a homestead exemption the owner must be the bona fide owner and reside thereon, to qualify for homestead exemption for that year. If you move you need to notify my office that you no longer qualify for that homestead. If you move to a new home and qualify for a homestead exemption you may notify us when you come into our office to file for new homestead exemption
Q. How can I appeal my assessment?
A. In order to appeal your assessment, a taxpayer must start at the parish assessor's office. During a period of 15 days between August 1st and August 15th, the assessment rolls are open for public inspection. During this period, taxpayers can check the values on their property, and discuss any concerns with their assessor. If there is a disagreement and the taxpayer wishes to protest the value, the taxpayer must at that time fill out a form “Notice of Appeal Request For Board of Review” (Form 3101), and schedule an appearance before the parish Board of Review. The date(s) of hearing(s) of the Board of Review in your parish will also be published by the assessor in the local newspaper.
The Board of Review office in Orleans Parish will determine if any changes should be made to the assessment values in question. If either the assessor or the taxpayer is not satisfied with the determination of the Board of Review, either may obtain from the Board, an Appeal Form (Form 3103.A) for further review by the Louisiana Tax Commission. The Louisiana Tax Commission will consider any and all appeals timely filed in hearings that are open to the public.
Those considering appeals are encouraged to consult the assessor, parish board of review and the Louisiana Tax Commission for specific procedures, dates, times, and places of all hearings.
Q. What are “special assessments” and who gets them?
A. In addition to the Homestead Exemption, effective January 1, 2002 , the State of Louisiana provided for an assessment “freeze” or special assessment for taxpayers aged 65 years or older. Under this provision, homeowners who are 65 years or older with an adjusted household income of $58,531 or less may qualify for a freeze on their assessment. The assessment is frozen at the amount assessed at the time of qualification. If granted, the special assessment is valid only for the tax year stated in the application and must be applied for annually. Failure to file will cause the special assessment level to lapse and the freeze will not be effective in years when no application is made. Further, in the event that the property is sold, or upon death of the homeowner, the special assessment will terminate on the last day of December of the year the property is sold.
Q. When should I discuss my assessment with the Assessor's office?
A. August 1 to August 15, which is the public exposure period in Orleans Parish; citizens and/or their designated representatives may visit the assessor's office to review their assessments. At that time, any questions can be addressed and/or disputed regarding assessments. The taxpayer will have an opportunity to meet with the assessor or an office staff member to provide documentation for an informal appeal of the assessment. It is during this time change orders are possible and in many cases, disputes can be handled before the Board of Review stage of the appeal process.
Q. When should I discuss my assessment with the Louisiana Tax Commission?
A. An assessment should be discussed with the LTC when a taxpayer has received an unsatisfactory judgment form the Board of Review. Proper documentation should be prepared and submitted to the LTC before going before the Commission.
Q. How do I appeal to the Louisiana Tax Commission?
A. The Louisiana Tax Commission is the next level of appeal after the Board of Review and will hear appeals from any taxpayer or assessor dissatisfied with the Board's determination. Form 3101A must be completed and submitted to the Tax Commission and each property requires its own appeal form.
Appeals are limited to those appealed to the Board of Review inclusive of the following:
• Name under which the property is assessed
• Description of the property
• Decision of the Board of Review
• Statement of desired outcome by the appellant
• Documentation presented to the Board of Review
• Listing of witnesses available to testify
Appellants may be represented in their appeal by an attorney at law, any designated representative or may choose to appear on his/her own behalf. Form 3101B, “Appointment of Taxpayer Agent in Louisiana Tax Commission Ad Valorem Tax Appeal” must be completed.
After the presentation of evidence, each side may argue its case before the Commission. The Tax Commission then makes a decision and must notify both parties, in writing, of its final decision by facsimile or certified mail. The taxpayer or the assessor may then decide to file suit within 30 days of postmark or date of facsimile.
Q. What are Millage Rates and who determines them?
A. Millage is the percentage of value that is used in calculating taxes. A mill is defined as 1/10 of 1 percent and is multiplied by the assessed value after any exemptions have been subtracted to calculate the taxes. For example: if the tax rate is 150 mills and total assessed value is $10,000 with no exemptions, the taxes would be calculated as $10,000 x .150 = $1,500.00. If for the same house you had a homestead exemption the taxes would be: $10,000 - $7,500(H.E.) = $2,500.00 x .150 = $375.00 in taxes. This demonstrates the importance of filing a homestead exemption.
Changes in millage rates occur under four circumstances
1. If the voters approve a millage increase.
2. If the legislature approves the creation of a special district and grants authority to levy a millage.
3. If the Board of Liquidation/City Debt adjusts the millage rate needed to collect the amount required to service its general obligation bonds. When new bonds are issued this millage increases and as older bonds mature this millage rate
decreases.
4. Every four years the Assessors must reassess real property. State law provides that the tax collected in the year following a reassessment is adjusted so that it is equal to the tax collected the previous year on the same property tax base. The amount of millage is then adjusted up or down to satisfy this requirement. If the millage is lowered because of an increase in property values, it may be “rolled up” to the prior year's millage after a public hearing and approval by a 2/3 vote of the taxing authority. The Assessors must reassess personal property every year and the Louisiana Tax Commission reappraises public service property every year.
Q. What is Personal Property?
A. Personal Property or movable property, includes all things other than real estate which have any pecuniary value, all moneys, credits, investments in bonds, stocks, franchises, shares in joint stock companies or otherwise (R.S. 47:1702 and R.S. 47:2322).
B. Personal property will mean tangible property that is capable of being moved or removed from real property without substantial damage to the property itself or the real property from which it is capable of being removed. Personal property will include, but not be limited to, inventory, furniture, fixtures, machinery and equipment, and all process and manufacturing machinery and equipment, including the foundation therefore (R.S. 47:2322).
Q. Who must report Business Personal Property?
A. Every person, association, company or corporation who will own or hold, subject to his or her control, any tangible or intangible business personal property is required to report said property for assessment every year.
Q. How does the Assessor collect data on the properties?
A. The assessor may use self-reporting forms (LAT Forms) to gather data necessary to determine fair market value. A self-reporting form is to be returned to the assessor by the first day of April, or 45 days after receipt, whichever is later (R.S. 47:2324). By failing to file a report when it is due, a property owner loses the right to appeal the appraisal by the assessor (R.S. 47:2329). If the failure to file is intentional, a penalty of 10 percent of the tax due will be imposed (R.S. 47:2330(A). If a taxpayer files a false report with the intent to defraud, a penalty of 10 percent of the tax due will be imposed (R.S. 47:2330 (A).
Q. Who sends out my property tax bill and who collects the taxes?
A. Property tax bills are sent out and collected by the City of New Orleans , Bureau of the Treasury. Both mortgage companies and the public are able to pay individual tax bills with a personal check, certified check, money order or ACH payment. ACH payments will only allow you to pay the bill in full. Any partial payments should be made either in person or by mail to:
City of New Orleans , Bureau of the Treasury
Rm. 1W38, 1300 Perdido Street
New Orleans , LA 70112
