
Editor, The Times
Homeowners have until Dec. 31 to challenge their tax bills, and many in Calcasieu Parish are doing just that.
Calcasieu Parish Tax Assessor Richard Cole said he has seen a slight increase in the number of property owners challenging their property tax assessments this year.
“This is a reassessment year, so a lot of people have been calling in,” he said, adding it was expected. “It's normal. I haven't seen anything out of the ordinary.”
He said in a reassessment year property tax amounts will likely be somewhat higher because property values are somewhat higher in most instances.
Despite what's happening on the national level, Cole said new properties are coming on the tax rolls, increasing the value of property in the parish.
“With the LNG plants moving in, the expansion of gaming and new projects like Westinghouse, gasification, and people moving in from Cameron Parish, our real estate market is at an all-time high,” he said.
While painting a picture of a rosier local economy than the rest of the nation, Cole did acknowledge home values nationwide are plummeting.
“So far it hasn't affected us,” he said. “We'll be watching to see what happens.”
Property owners speak up
Although it has been reported that Southwest Louisiana is not suffering from the economic downturn like the rest of the country, a visit with with local property owners turns up a different view.
Kerry Caballero, Director of Pharmacy at Extended Care of Southwest Louisiana in Lake Charles, reported his property taxes were up approximately 30 percent from last year. Does he believe his property increased in value by 30 percent?
“No, because the housing market is stagnant,” he said. “In a down economy, citizens want to hold on to their money and not make large purchases.”
Caballero agreed that the steep home price declines that have been making headlines doesn't reflect what's happening here in Lake Charles.
“The rate of foreclosures is nowhere near that of the West Coast,” he said. “Still, houses are staying on the market quite a long time in Lake Charles.”
He said several people he knows are having difficulty selling their homes for the asking price because of the amount of time it takes to make a sale.
“Ideally, there should be a direct correlation between the tax increase and the value of your home,” Caballero said. “But, taxes are increasing and property values are staying the same, or decreasing.”
Caballero said he plans to challenge his tax bill this year.
In an article on BusinessReport.com, J.R. Ball reported that homeowners from across the state are arguing that their homes, businesses and property are not worth as much as the government says.
He said, “The rumbling began a month or so in Livingston Parish – where the legally required four-year reassessment showed the value of a typical house increased by more than 25 percent – and has now made its way to St. Tammany Parish, where the screams are so loud that area state legislators are promising new laws to stem the tide against what Rep. Kevin Pearson calls 'sticker shock.'”
State Rep. Pearson, R-Slidell, said some in his district have seen their homes increase in value by more than 150 percent in only four years.
Ball wrote, “I'll speak only for myself here, but I'd be thrilled if the value of my home soared 150 percent over a four-year period. I guarantee you folks in places like Miami, Las Vegas and Los Angeles – where home values have plunged by something like 150 percent over the past 18 months – would be giddy with any increase in the value of their property.”
Taxation without representation
He and others from across the state report there's a type of bait-and-switch tax increase that has become commonplace throughout the state as the homestead exemption weakens in economic value.
“State law also allows the scores of taxing authorities – school, parks and library systems, council governments, and any number of fire departments, development districts and what not – to raise additional revenue by rolling the millage forward to a rate up to the original voter-approved millage,” Ball stated. “Almost every taxing authority, many of which are filled with decision-makers not elected by voters, goes this route, which is why property reassessments have become synonymous with higher property taxes.”
Normally, state law requires that proposed tax increases go before the voters in the next scheduled election, yet this “roll forward” loophole has allowed many local governmental bodies to avoid the intent of that constitutional provision, thereby increasing taxes without public approval and spending the money however the politicians chose.
Many have called for a change in state law that would require any attempts to roll forward millages to be approved by a public vote in the next election.
State Rep. Jeff Arnold, D – New Orleans, attempted to pass such legislation earlier this year, but opposition from local governments blocked his bill.
Perhaps in the next session, homeowners scorched by rising property taxes will generate enough support to approve Arnold's reform.
Immediate tax relief
Meanwhile, there is hope. Local property owners may be eligible for tax relief.
Paul Hargrove, of West Monroe, said property owners who incurred wind damage and flooding from recent hurricanes can have their property reassessed and even request deferment of taxes.
Hargrove, a member of the Louisiana Tax Commission, recently discovered provisions in state law that allow property owners who suffered damage from a declared disaster the options of obtaining a reassessment and a deferment in paying taxes.
According to state law, assessors are required to reassess all “lands or property, including buildings, structures, or personal property that are destroyed, uninhabitable, or non-operational due to a disaster or emergency declared by the governor.”
Following hurricanes Katrina and Rita in 2005, the state lawmakers approved legislation that allows for property owners who incurred damaged or destroyed property from a disaster or emergency declared by the governor the option to “file and application for deferment of payment of taxes.”
The Louisiana Tax Commission can provide an affidavit for taxpayers to sign. The LTC provides the affidavit on its Web site at www.latax.state.la.us.
Property owners should contact the tax assessor if they own property that was damaged by a declared disaster. Also, the tax assessor is the public official who should be contacted about deferring property tax payments.
According to state law, “the property owner wishing to defer payment of taxes shall make a sworn statement in triplicate no later than Dec. 31 of the year in which the damage or destruction occurred, or 30 days after the tax bill has been mailed, whichever is later.”
This applies to both residential and business property tax payers who had any damage related to the storm.
It is important property owners document the damage caused by a disaster to provide to the parish tax assessor, Hargrove said. Documentation can include photographs, damage and work estimates from contractors and insurance claim documentation.
A red flag
When the economy is faltering and spawning foreclosures, short sales and homeowners otherwise bailing out of homeownership, consider it a red flag - and time to scrutinize the tax bill.
Over valued or over assessed property is perhaps the most common and successful grounds for challenging tax bills, according to officials.
Anyone who believes their property was not property was not properly assessed can discuss the matter with Cole. Sometimes values change because of errors, he said.
Property owners who think their assessment is incorrect should notify his office before Dec. 31, Cole said.
“With 120,000 parcels of property to reassess, it's possible to make mistakes,” he said. “Most of the time the values are correct. But if it is wrong and there's evidence to back it up, reductions can be made.”
For more information, visit the assessor's office in the Magnolia Life Building on 1011 Lakeshore Drive.