Committee defers local-option homestead exemption bill after fiscal and equity questions
Loading...
Summary
Senate Bill 7, filed by Senator Kleinpeter to allow parishes to increase the homestead exemption beyond the current $7,500 up to $12,500, was deferred after assessors and the Legislative Fiscal Office warned of uncertain impacts on local millages, businesses and the Minimum Foundation Program.
Senate Bill 7, a constitutional amendment by Senator Kleinpeter to give parish governing authorities the option to increase the homestead exemption above the current $7,500 up to $12,500 (as stated in committee), was deferred by the Senate Committee on Revenue and Fiscal Affairs on April 7 after extended questioning and public testimony.
Staff presented amendment set 14-61, which clarifies that additional exemptions for disabled veterans and qualified first responders would apply on top of any locally increased homestead exemption; the committee adopted that amendment set without objection. Senator Kleinpeter said the change is intended to give local governments a way to provide tax relief to homeowners.
Assessors and local officials told the committee the change would reduce taxable collections in some parishes and could lead local taxing bodies either to cut services, increase millage rates, or shift a larger share of tax burden to businesses. Todd Dugas, Saint Martin Parish assessor, estimated an example reduction of roughly $3.3 million in parish collections under one scenario and argued homeowners would still see net savings in his parish under phased implementation. "So the millage may go up, but you would still see a big savings," Dugas said.
Chris Guillory, Evangeline Parish assessor, described longtime homeowners and seniors as potential principal beneficiaries and noted that large industrial additions can reduce millages, producing net savings for homeowners. "These people are 65, 75, 85 years old, and that's who it would help tremendously," Guillory said.
Garrett Ordner of the Legislative Fiscal Office told members the fiscal note mentions a potential effect on the Minimum Foundation Program (MFP): increasing the homestead exemption lowers the net taxable base used in MFP calculations, which could change the distribution of state funding among districts; the net effect on state-level level 1 payments would be an internal reallocation, while level 2 effects are uncertain.
Guy Cormier of the Police Jury Association urged that, if the change moves forward, the committee consider amendments to require a public vote and to involve school boards, sheriffs and other taxing authorities so those stakeholders can weigh in before a local governing authority acts.
After the discussion and testimony the chair moved to defer the bill to allow time to review the fiscal concerns and possible amendments; the motion passed without objection and Senate Bill 7 was kept in committee.
