New Orleans City Council unanimously approves property tax hike
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New Orleans homeowners will pay higher property taxes next year. Now, city leaders have two weeks to decide what they'll get in return.
Why it matters: An average homeowner could pay about $150 more annually, officials say. Use the city's calculator to see the exact amount for your property.
The big picture: The City Council voted unanimously Thursday to raise some of the millage rates, but not all.
- Voters have approved the taxes over the years, and it is up to the discretion of the council to set what rate is charged, based on how much revenue the city needs.
- Property taxes provide about half of all local tax dollars in New Orleans, according to the nonpartisan Bureau of Governmental Research.
- Mayor Helena Moreno asked for the increase as a way to offset about $21 million of the proposed $77 million cuts in 2027's budget.
Yes, but: Even with the new money, the city still has to cut about $30 million from the budget, chief administrative officer Joe Giarrusso says.
- Councilmember Jason Hughes says he wants to prioritize avoiding layoffs and furloughs.
- Many city workers have been furloughed one day every pay period all year. Giarrusso says he's in talks to hopefully end the furloughs "sooner rather than later."
Zoom in: The City Council and the mayor's administration will spend the next two weeks negotiating the final budget.
- Moreno outlined her preferences for what to save with the property tax revenue. Budget chair Lesli Harris says the council is aligned on some items, like restoring funding for the low-barrier shelter and Mardi Gras cleanup, but there's work to do on other items.
- Council members also want to avoid proposed layoffs in the sanitation department, which officials say could lead to overflowing public trash cans across the city.
The intrigue: The mayor and the council say they want to figure out a way for nonprofits, which usually don't pay property taxes, to contribute to the city's coffers.
- "We cannot continue to balance the budget solely on our homeowners," Hughes says.
- About 37% of the city's real estate value was exempt from property taxes in 2025, BGR says in a new report.
- If those properties were taxed, it could generate more than $300 million annually, the report estimates.
What's next: The council votes on the final budget Nov. 19.