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How do I appeal to the Louisiana Tax Commission?
How is your property assessed?
When should I discuss my Assessment with the Tax Commission Office?
What causes property values to change?
What are my rights and responsibilities?
When should I file a homestead exemption application?
What are the qualifications to apply for the special assessment level for
65 and older?
What is the relationship between market value and assessed value for property
in Louisiana?
What is meant by millage rates or mills?
What causes adjustments to millage rates?
What is personal property?
Who must report business personal property?
How are public utilities valued in Louisiana?
When is the appropriate time to publish notice of the opening of the books for public inspection?
How long do the books have to be made available for public inspection?
How
do I appeal to the Louisiana Tax Commission?
In order to appeal to the Louisiana
Tax Commission, a taxpayer must start at the parish assessor’s office. During a period of 15 days between
August 1st and September 15th, the assessment lists of each parish are open
for public inspection. The assessor will publish in the local newspaper which
two weeks apply to his/her office. During this period, taxpayers should check
the values on their property, and discuss this with the 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 for hearing(s) held for this purpose. 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 your 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.
How is Your Property Assessed?
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.
When
Should I Discuss My Assessment with the Assessor’s Office?
Each year during August 1st through
September 15th the assessment rolls are open for public inspection and
for discussion of the assessment with
the assessor’s office. This is the time to discuss your assessment.
It also is the time that a taxpayer can legally file a protest to the assessment
if a settlement with the assessor cannot be reached. Many taxpayers wait
until the tax bills are sent each year to discuss their assessment. The assessor
will discuss your assessment at that time but a property owner cannot legally
file a protest at that time.
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.
What Are My Rights and Responsibilities?
As a property owner, your rights
include knowing how the assessor arrived at the values placed on your property.
You have the right to look at the
public records and ask questions. If, after discussing values with the assessor,
you do not agree with his/her findings, you have the right to appeal to the
Board of Review of your parish, and then to the Louisiana Tax Commission.
As a property owner, you have the responsibility to see that all taxes on
your property are paid in a timely manner. You should check with the assessor’s
office to determine if your are eligible for exemptions, or special assessments.
When Should I File A Homestead Exemption Application?
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.
What Are the Qualifications to Apply for the Special Assessment Level for
65 And Older?
A Special Assessment applies to
the homestead of person s who are 65 years of age and older if the adjusted
gross household income is below a certain
level. For the tax year 2009, that level will be $64,655. The level may
change form year to year, so it is advisable to check with your assessor’s
office to determine whether you qualify. This special assessment will freeze
the assessed value of the homestead for as long as the applicant owns and
resides in the home and income does not exceed the maximum allowed. This
Special assessment level is lost if improvements in excess of 25% of the
home’s value are added. Proof of age and income is required at the
time the application is signed. The freeze extends to a surviving spouse
who is at least 55 years of age, and meets all other qualifications.
What Is The Relationship Between Market Value And Assessed Value For Property
In Louisiana?
In Louisiana, the classification of property subject to ad valorem taxation
and the percentage of fair market value applicable to each classification
for the purpose of determining assessed value are as follows:
Classifications |
Percentage |
Land |
10% |
Improvements for
Residential |
10% |
Improvements for
Commercial |
15% |
Business Movable
Property (Personal) |
15% |
Public Service
(Excluding Land) |
25% |
Bona fide agricultural, horticultural, marsh and timberlands as defined
by Revenue Statues shall be assessed for tax purposes at 10% of use value
rather than market value. The Louisiana Tax Commission sets these values.
What Is Meant By Millage Rates Or Mills?
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.
What Causes Adjustments to Millage Rates?
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. |
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). |
Who must report Business Personal Property?
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.
How does the Assessor collect data?
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).
How are public utilities valued in Louisiana?
Public Utilities are values by the Louisiana Tax Commission using the unit
methodology which includes cost, income, and market approaches.
When is the appropriate time to publish notice of the opening of the books for public inspection?
The notice should be published at least twice within a period not sooner than twenty-one (21) calendars days nor later than seven (7) calendars days prior to the first day of the public exposure.
How long do the books have to be made available for public inspection?
The assessment lists have to be open for public inspection for fifteen (15) days, except Orleans Parish who shall have their list open for public inspection July 15th through August 15th.
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