News Summary
The City of New Orleans has paused tax collection fees for the Orleans Parish School Board amid a legal dispute. A judge approved the halt until the end of 2026, which allows for negotiations on a new fee structure. The OPSB alleges that the city owes $135 million in fees, which have been contentious for years. With potential impacts on educational services, both parties are hopeful for a resolution during this period of negotiation.
New Orleans – The City of New Orleans has announced that it will halt tax collection fees for the Orleans Parish School Board (OPSB) as part of an ongoing legal dispute over fees collected from sales and property taxes. This decision comes as the OPSB, along with various charter schools, challenges the city’s annual collection of around $8 million in fees.
A judge has approved an agreement to pause the collection of these fees until the end of 2026. During this period, the city and the OPSB will negotiate a new fee structure. The OPSB’s attorney has expressed cautious optimism, seeing the agreement as a step towards resolving the contentious lawsuit surrounding these fees.
Currently, the city retains 2% of property taxes and 1.6% of sales taxes as an administrative charge. In 2024, the city collected approximately $12 million from various fees, including tax collection charges. The Mayor’s administration has defended these fees as a necessary charge for the services provided.
The dispute dates back six years when the OPSB filed a lawsuit against the city, alleging that these fees were illegal. The legal conflict has intensified this year, with multiple court rulings and appeals affecting several charter schools, such as KIPP, Firstline, and ReNEW. Recent agreements to halt collection of the fees have rendered existing injunctions related to these cases moot.
According to the OPSB, the city owes $135 million for fees collected over nearly two decades, a claim that indicates the scale of the potential financial implications for the OPSB. In a previous proposal aimed at reaching a settlement, the city offered to stop the fees and make $90 million in payments. However, this offer was rejected by the Mayor, who cited financial constraints, leading to the continued legal struggle.
In addition to the OPSB, the City Council has joined the lawsuit against the city in a response to the ongoing fee collection issue. Earlier this year, Judge Nicole Sheppard determined that the city was liable for $10 million due to budget approval disputes, but this decision has been appealed by the city, prolonging the legal battle.
The current financial challenges facing the OPSB have amplified the stakes of this dispute. The inability to secure funding from these fees threatens the financial health of the board, with repercussions potentially affecting educational services across the district. As negotiations are set to take place, both the city and the OPSB are hopeful for a resolution that could bring clarity and stability to the financial interactions between the two entities.
With legal maneuvers continuing to unfold and a new fee structure on the horizon, the forthcoming negotiations will be pivotal in determining not only the future financial relationship between the City of New Orleans and the OPSB but also the broader implications for education funding in the area.
Deeper Dive: News & Info About This Topic
HERE Resources
Orleans Parish School Board Delays Settlement with City
Additional Resources
- WWLTV: New Orleans Halts School Tax Fees
- NOLA: City of New Orleans Agrees to Stop Charging School Tax Fee
- LA Illuminator: Schools and Katrina
- Encyclopedia Britannica: Taxation
- Google News: New Orleans School Tax
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
