Louisiana Proposes Increasing Homestead Exemption to Alleviate Property Tax Burden

Louisiana lawmakers are considering a constitutional amendment to allow local parishes to increase the homestead exemption from $75,000 to up to $125,000 of a home's assessed value, a change not seen since 1980. This adjustment aims to provide property tax relief amid rising homeowners insurance costs and inflation, potentially saving homeowners in cities like New Orleans up to $800 annually.

The amendment requires voter approval statewide and, if passed, enables local governments to adjust exemptions individually based on their financial capacities. The Bureau of Governmental Research recommends analyzing the fiscal effects, particularly concerning potential shifts in tax burdens to renters or businesses. Ultimately, the measure could influence population trends and federal funding allocations dependent on census outcomes.