Louisiana Homestead Exemption

1
LouisianaHomestead Exemption

• Implications of
• Residential Real Estate Relief
• On Businesses

2
Classifications of Property

• Land 10
• Residential Imps 10
• Electric Coops 15
• Public Service Property 25
• All Other Property 15

3
Use Value Assessment

• Agricultural, Horticultural,
• Marshland, Timberland
• 3 acres or more, or
• Produces 2,000 income in previous 4 years
• Assessed at 10 of use value
• as opposed to 10 of FMV

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Homestead Exemption

• Current Amount 7,500 of A/V
• Historic Amounts
• 1930 2,000
• 1974 3,000
• 1975 5,000
• 1980 7,500

5
Exemption May Cover

• Multiple tracts up to 160 acres
• Residential improvements
• including mobile homes
• Land assessed at use value

6
Additional information

• Taxpayer must own and occupy
• Only 1 home per person/persons is allowed
  exemption
• Exemption does not apply to land upon which
  residence is sited if homeowner does not own the
  land

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Who Qualifies?

• Owner who occupies
• Surviving spouse/former spouse as partial owner,
  usufructuary, beneficiary of trust
• Trust when prior owner is beneficiary and
  previously qualified
• Usufructuary who is prior owner and previously
  qualified
• Owner in indivision with limitations
• Bond for Deed exemptions granted prior to 6/20/03
  and still in effect

8
Additional Information

• Not applicable to municipal taxes with the
  exception of some taxes in New Orleans
• Disaster or Emergency Declaration by Governor
  allows continuation of exemption on uninhabitable
  residence for 5 years with the owners intention
  to return

9
Special Assessment Level

• Freezes the assessed value of homestead for
  certain groups of individuals whose income is
  below a certain level
• Who qualifies?
• 65 years of age
• 50 Service related disability
• KIA, MIA or POW
• 100 disabled

10
2007 Assessed Values

• Total Assessed Value 31,972,912,866
• Real Property 18,965,829,120
• Personal Property 9,565,628,826
• Public Service 3,441,454,920
• Homestead Exemption ( 6,194,980,444)
• Taxable Value 25,777,932,422

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2007 Taxes

• Total Taxes 3,523,972,544
• Homestead Taxes 683,382,883
• Taxes Collected 2,840,589,661
• 1,149,497 homesteads
• 639,200 100 homesteads

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Business Incentives

• Louisiana Economic Development
• .
• These business incentives are funded by the State
  of Louisiana to attract and cultivate business,
  and are administered by La. Dept. of Economic
  Development
• These incentives are in addition to available
  Federal Business Incentives and numerous
  Financial Assistance Programs

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Incentives

• Enterprise Zone income and franchise tax
  credits hiring minimum number of net new
  employees
• Quality Jobs provides cash rebate to encourage
  targeted new businesses to locate in Louisiana
• Restoration Tax Abatement encourages expansion
  restoration of existing structures by deferring
  taxes on the renovation/improvement

14

• Industrial Tax Exemption Up to 10 yrs exemption
  from property tax on capital investments in
  manufacturing business
• Research Development Tax Credit Offers credit
  against state income and corporation franchise
  taxes for research and development activities

15

• Industry Assistance Program Offers tax
  exemption when manufacturers give preference and
  priority to Louisiana manufacturers, suppliers,
  engineers, labor
• Tax Equalization Program Encourages
  manufacturers by equalizing the overall taxes to
  be paid if choosing Louisiana over another state
  with a lower total tax burden

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Federal Business Incentives

• Gulf Opportunity Zone
• Renewal Communities Tax Credit
• New Markets Tax Credit

17
Financial Assistance

• Economic Development Award Program
• Small Business Loan Program
• Contract Loan Program
• Venture Capital Match Program
• Venture Capital Co-Investment Program
• Louisiana Seed Capital Program
• BIDCO Investment Program
• Workforce Development Program

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Whats Next?

• Each year, we see proposed legislation which
  would increase the homestead exemption or give
  additional credits
• 2008 5 bills
• 2007 6 bills
• 2006 4 bills