News Summary
State Representative Matthew Willard has introduced House Bill 271 to raise Louisiana’s Homestead Exemption from $7,500 to $12,500. This proposal aims to ease the financial burden on homeowners struggling with rising property taxes and insurance costs. The last increase occurred in 1980, and supporters believe this adjustment is necessary for housing affordability. If passed, the decision will rest with voters in November 2026, with potential implementation by January 2027.
New Orleans
On May 6, State Representative Matthew Willard (D-New Orleans) announced a significant proposal aimed at increasing Louisiana’s Homestead Exemption through House Bill 271. If passed, this legislation would raise the homestead exemption from $7,500 to $12,500 of assessed property value, effectively increasing the exemption’s market value coverage from $75,000 to $125,000.
This legislative proposal comes in response to concerns regarding the rising home ownership costs that families in Louisiana, especially in cities like New Orleans, have been facing. With property taxes and insurance costs continuously increasing, many homeowners are struggling to keep their houses. Notably, the Homestead Exemption has not seen an increase since 1980, resulting in a diminished capacity to reduce property taxes for residents, and placing a more significant tax burden on homeowners.
Recent trends show that during the pandemic, property assessments in various neighborhoods throughout Orleans Parish have surged without a parallel increase in household incomes. As a result, numerous residents are reportedly being forced out of their homes due to financial pressures stemming from these disparities.
If House Bill 271 is approved by the legislature, it will require a two-thirds vote in both chambers, as well as majority approval from voters statewide before appearing on the ballot in November 2026. Should it gain approval during the election, the new exemption would take effect on January 1, 2027.
Supporters of the bill argue that the proposed increase is a necessary adjustment, pointing to similar reforms in other states. States like Texas have already implemented comparable adjustments, with voters approving an exemption increase in 2023. States such as Georgia, Nebraska, and Massachusetts have also updated their homestead exemptions recently, highlighting a broader trend of states addressing the issue of housing affordability.
In recent amendments to HB 271, Willard has also suggested allowing parishes the option to either raise the homestead exemption or maintain the current level. This would enable local governments to raise the exemption by an additional $5,000 if they choose. This flexibility aims to accommodate local conditions while providing enhanced support for homeowners.
Support for HB 271 is growing among local officials. For instance, Assessor Erroll Williams from New Orleans has expressed that the current exemption is out of sync with the rising housing costs. Williams also highlighted the potential negative consequences for government revenue if residents cannot afford to stay in their homes, as this could lead to lower property tax revenues that fund essential services.
Additionally, Rep. Mandie Landry (D-New Orleans) has reported receiving weekly complaints from constituents about the financial strain of property taxes, contributing to her support for the necessity of increasing the homestead exemption. However, the proposal has encountered some opposition from lawmakers who warn that increased exemptions could introduce fiscal challenges for local governments, especially concerning funding for education.
The Louisiana Association of Business and Industry has also voiced its opposition to the proposed increase, advocating for a different approach to address these issues. Ultimately, the fate of House Bill 271 rests with the voters, as any changes to the Homestead Exemption will require a constitutional amendment.
Individuals wishing to express opinions on HB 271 have the opportunity to submit written statements to the House Ways and Means Committee, potentially shaping the discussion around the future of this critical piece of legislation.
Deeper Dive: News & Info About This Topic
HERE Resources
Louisiana Prepares for Tax Code Changes Vote
Additional Resources
- FOX 8 Live: Homestead Exemption Bill Advances in Louisiana Legislature
- Biz New Orleans: Rep. Willard Pushes to Increase Homestead Exemption
- NOLA: New Orleans Assessor Supports New Homestead Exemption Bill
- Husch Blackwell: Fifth Circuit Strikes Down New Orleans Ordinance
- NOLA: Tammany Homeowners Facing Increase in Property Taxes
- Wikipedia: Homestead Exemption
- Google Search: Property Taxes in Louisiana
- Google Scholar: Homestead Exemption
- Encyclopedia Britannica: Property Tax
- Google News: Louisiana Homestead Exemption
