Understanding Homestead Exemptions and The Appeal Process
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In Louisiana, we have Homestead Exemptions, a tax exemption on the first $75,000 of a person’s home value. This exemption applies to all homeowners. The value of your home is exempt up to $75,000 from state and parish property taxes. Here are some frequently asked questions:
When Should I File A Homestead Exemption Application?
To qualify for homestead exemption, one must own and occupy the house as their primary residence. Regardless of how many homes are owned, no one is entitled to more than one homestead exemption, a maximum of $7,500 of assessed value. If you change primary residence, you must notify the assessor.
After your real estate closing, your title company will file your act of sale in the Parish Clerk of Court office. It is advisable to go to the assessor’s office and apply for homestead exemption as soon as you purchase and occupy your home. Take your executed Act of Sale to the Assessor’s Office along with a form of identification, and they will take care of the rest. In several parishes, you can even file for a homestead exemption online
If you can’t or forget to file right after closing, don’t fret, you can do it at any time. We recommend doing it as soon as you purchase so you don’t forget. Remember, this is a significant tax saving for you. On average, the savings is $700-$800/year.
Regardless of how many houses are owned, no one is entitled to more than one homestead exemption, a maximum of $7,500 of assessed value. To qualify for homestead exemption, one must own and occupy the house as their primary residence. If you change primary residence, you must notify the assessor.
Special Assessment
A Special Assessment applies to the homestead of a person who is 65 years of age and older if the adjusted gross household income is below a certain level. The level may change from year to year, so we advise that you check with your assessor’s office to determine whether you qualify. This special assessment will freeze the assessed value of the homestead for as long as the applicant owns and resides in the home and income does not exceed the maximum allowed. This Special assessment level is lost if improvements over 25% of the home’s value are added. Proof of age and income is required when the application is signed. The freeze extends to a surviving spouse at least 55 years of age and meets all other qualifications.
How is Your Property Assessed?
To find the value of any piece of property, the assessor must first know:
the selling price of similar properties
the cost to replace it today
how much it takes to operate and keep it in repair
what rent it may earn
many other economic factors affect its value, such as the current interest rate charged for borrowing the money to buy or build similar properties.
What Causes Property Values To Change?
A property’s value can change for many reasons. The most obvious reason is that physical changes may have been made to the property, such as additions, improvements, or significant damage. The most frequent cause of change in value is a change in the market. The assessor does not create value—the value of property increases or decreases based on transactions in the marketplace.
When Should I Discuss My Assessment with the Assessor’s Office?
From August 1st through September 15th, the assessment rolls are open for public inspection. During this time, you can discuss the assessment of your property with the assessor’s office. You have the right to file a protest of the evaluation if you cannot reach a settlement with the assessor.
Many taxpayers wait until the tax bills are sent each year to discuss their assessment. The assessor will discuss your assessment at that time, but a property owner cannot legally file a protest.
How do I appeal to the Louisiana Tax Commission?
To appeal to the Louisiana Tax Commission, a taxpayer must start at the parish assessor’s office. During 15 days between August 1st and September 15th, the assessment lists of each parish are open for public inspection. During this period, taxpayers should check the values on their property. Suppose there is a disagreement, and the taxpayer wishes to protest the value. In that case, the taxpayer must at that time fill out a form “Notice of Appeal Request For Board of Review” (Form 3101) and schedule an appearance before the parish Board of Review for hearing(s) held for this purpose.
The Board of Review office in your parish will determine if any changes should be made to the assessment values in question. Suppose either the assessor or the taxpayer is not satisfied with the determination of the Board of Review. In that case, either may obtain from the Board an Appeal Form (Form 3103A) for further review by the Louisiana Tax Commission. The Louisiana Tax Commission will consider any appeals timely filed in hearings open to the public.
Those considering appeals are encouraged to consult the assessor, parish board of review, and the Louisiana Tax Commission for specific procedures, dates, times, and places of all hearings.
What Are My Rights and Responsibilities?
As a property owner, your rights include knowing how the assessor arrived at the values placed on your property. You have the right to look at the public records and ask questions. If you disagree with their findings after discussing values with the assessor, you have the right to appeal to the Board of Review of your parish and then to the Louisiana Tax Commission. As a property owner, you are responsible for seeing that all taxes on your property are paid promptly. You should check with the assessor’s office to determine if you are eligible for exemptions or special assessments.
Homestead Title is a full-service title and escrow company. Since 1934, we have provided our customers with competent, thorough, and professional service. Before each closing, we search public records to clarify legal and financial risks for lenders, realtors, and other stakeholders in the real estate transaction
process. Our energetic and capable team of real estate title professionals provides accurate investigations, rapid turnaround time, streamlined paperless delivery, and exceptional customer service. For more information, call us at (504) 581-6427 and let us provide you with a smooth and efficient real estate closing.