Louisiana Passes New Property Tax Relief Amendments for Seniors

On Tuesday, Louisiana voters passed four ballot measures on property tax exemptions, aimed at providing tax relief for seniors, surviving spouses of disabled veterans, and entrepreneurs who rehab dilapidated homes.

Voters passed Amendment 1 with 76% support. Amendment 1 allows the surviving spouse of a disabled veteran transfer the homestead property tax exemption to a new home.

Currently, disabled veterans receive a homestead property tax exemption that is commensurate with the degree of disability they experience. Spouses are able to maintain the exemption in the event of their veteran spouse passing away. However, this amendment allows a one-time opportunity to the surviving spouse to transfer the exemption to a new property as well.

The Louisiana Department of Veterans Affairs as well as Leaders for a Better Louisiana and Louisiana Realtors® all expressed support for the measure.

Meanwhile, the Power Coalition for Equity and Justice opposed the measure, saying: "We support veterans and their families, but we do not need another special tax exception written into the state constitution."

Property tax relief for seniors

Amendment 6 passed with 65% support. It proposes a property tax exemption of up to $30,000 for homeowners over age 65 who already qualify for an income assessment-based freeze.

Introduced by state Rep. Les Farnum, the amendment received support from both Democrats and Republicans.

The nonpartisan Leaders for a Better Louisiana, Power Coalition, and the nonprofit Pelican Institute for Public Policy all opposed the amendment.

In its explanation for its opposition to the amendment, Leaders for a Better Louisiana wrote: "While we like the idea of shielding senior citizens from taxes they have no control over...we wish it provided more flexibility for local governments to tailor tax breaks in a way that might be more suited to their individual goals and situations. As we have stated elsewhere, the better approach would be to untie the hands of local governments with regard to property taxes, rather than putting more rules in the constitution.

The Louisiana Realtors expressed support for the amendment: "No community is forced to do anything. Each one decides for itself whether helping its seniors age in place is worth it. That is how local control should work."

Meanwhile, 59% of voters supported Amendment 9, which raises the income level for seniors to qualify for a property tax freeze from $100,000 to $150,000, allowing more people to qualify for the freeze.

The amendment aims to offer increased financial relief to seniors, many of whom live on fixed incomes. Proponents argued that the amendment could attract more seniors to the state. Critics said it would further reduce the tax dollars local governments require for social services.

Currently, around 230,000 people qualify for the freeze in the state.

The last time voters approved an increase in the income limit for the special property tax assessment was in 2020, when voters approved an increase in income limit from $50,000 to $100,000.

Louisiana Realtors expressed support for the amendment, saying that "the income limit to qualify has not kept pace with the cost of living."

Tax relief for bringing derelict homes back to life

Amendment 10, which allows communities to create optional property tax exemptions for blighted and derelict property that has been rehabilitated, also narrowly passed with 53% support.

Under the initiative, up to 75% of a rehabilitated property's assessed value would be exempt from property taxes for up to 20 years. Meanwhile, cleared lots would receive a 25% exemption on assessed value for up to 10 years as long as they weren't next to residential or commercial buildings.

Proponents argued this would incentivize the rehabilitation of derelict properties and positively impact the safety and well-being in a community. Communities could choose to opt in or out of the initiative depending on local needs.

In the U.S., property tax rates are determined at the local level and vary widely. The average effective property tax rate on owner-occupied housing in Louisiana is 0.55%, which is relatively low compared with states like New Jersey and Illinois, where the effective tax rate is 1.88%, according to the Tax Foundation, a nonpartisan tax policy nonprofit.