New Orleans' proposed property tax increase, explained
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New Orleans voters have already approved higher property tax rates, but city leaders haven't been charging the maximum amount.
Why it matters: The City Council will vote on whether to charge more of the allowed amount, potentially bringing in millions to help avoid cuts to city services.
The big picture: Property taxes are calculated using rates called millages. The amount you pay depends on your property's assessed value, with the most expensive homes in the city generally paying the most in taxes.
- The City Council has the power to levy the millages, based on how much revenue they think the city needs.
- Previous councils chose not to charge the higher rates, partly because city revenues covered expenses, says Andrew Tuozzolo, the mayor's special counsel.
Yes, but: The financial situation has changed, so Moreno is asking the council to charge more, a process called rolling forward.
- Council members can vote to charge some or all of the taxes.
- Some have dedicated purposes, such as the library and early childhood, while others would go to the general fund and could be used to avoid sanitation layoffs.
By the numbers: The average homeowner could pay about $200 more annually if the measure passes, Mayor Helena Moreno's administration says.
- City Hall built a calculator that shows how much each home will pay.
- For example, the average market value for a home on the East Bank is $315,700, the calculator says. Its annual tax bill is currently $3,299.19.
- If the council votes to approve everything, it will add $190.01 annually.
The intrigue: Many churches, nonprofits and universities are exempt from property taxes in Orleans Parish.
- This has become a heated issue lately, with Orleans Parish tax assessor Erroll G. Williams challenging an exemption for the Higgins Hotel, which is owned by an entity related to the National WWII Museum.
- Tax-exempt entities own less than 10% of properties in Orleans Parish, but make up nearly one-third of total property value, according to a September press release from his office.
- The mayor and City Council have both expressed a desire to figure out a way to get more properties to contribute to city services.
What's next: The City Council is scheduled to vote Nov. 5 on which property tax rates, if any, to roll forward.