by Dan Juneau-The LABI Report

In the colorful sideshow we call Louisiana politics, one issue area studiously avoided by those we elect to office is that of property taxes. For years, governors and legislators have convinced themselves that any foray into the forbidden land of property tax reform will lead to electoral assassination by the voters. Historical polling data doesn’t necessarily support that contention, but the fears persist.

A recent study conducted by the Legislative Auditor has again exposed the significant need for reform in Louisiana’s poorly administered and politically abused property tax system. The report once again illustrates that the system is flawed and unfair.

In Louisiana, we elect our local property tax assessors in each parish. Ostensibly, their job is to provide a current and accurate roll of each piece of property subject to taxation and the true value of that property. The Legislative Auditor’s report again reminds us of how poorly the system works in many areas. After reviewing the work of 12 assessors’ operations in various parts of the state, the study found that assessors are not updating residential, commercial and industrial property values as they should, and they are granting homestead exemptions on properties that do not qualify for property tax exemptions.

In a recent commentary on the Legislative Auditor’s findings, The Public Affairs Research Council (PAR) summed up the situation well: “Once in office, the (elected) assessor often assumes the role of protecting the homeowner from property taxes. The assessor is frequently a vocal lobbyist on property tax issues but may also curry favor by granting low assessments or inappropriate homestead exemptions. The Legislative Auditor cited one assessor’s admission to underassessing in order to keep property taxes low.”

In Louisiana, some politically motivated assessors have viewed their job as exactly that–keeping property taxes low. When some property owners get preferential treatment from assessors, either other property owners must pick up the slack or local governments are denied revenue that is legitimately due them.

It will be interesting to see if the Legislative Auditor’s report will spur long overdue reform in the system or simply be swept under the rug by elected officials who run away from property tax reform like crows frightened by a scarecrow. The obvious reforms needed in the property tax system undoubtedly present a scary specter to candidates for governor and the Legislature. Abuses of the system will continue as long as we elect assessors who find it much more palatable to run on a platform of helping property owners evade taxes legitimately owed than one based on a promise of having the most complete and accurate property tax assessment base possible.

Since the state of Louisiana does not currently impose a property tax, taxpayers have no standing to sue for statewide equalization of assessments that would ensure no property owner pays a lower tax than others with similarly valued property. Some have suggested the state should impose some extremely small millage to allow for a judicial remedy to this problem. Unless assessors either become appointed or change their bad habits, this may be one of the few solutions available.

Louisiana has a property tax system gone astray. Too much property that should be taxed is not on the rolls, and there are too many inconsistencies in how similar pieces of property are assessed. If our governors and legislators keep ignoring what the Legislative Auditor’s report clearly exposed, we will continue to deny local governments legitimate revenue and penalize some taxpayers to subsidize others.