A bill that will be considered in the upcoming legislative session could lead to changes to Louisiana’s constitutionally protected homestead exemption, Watchdog.com reports.
Currently, Louisiana exempts from property taxes the first $75,000 of a home’s market value, or the first $7,500 of assessed value. If you own your primary residence and it is worth $75,000 or less, you pay no property taxes on that home.
House Bill 12 by Rep. Steve Carter, R-Baton Rouge, would allow parish governing authorities with voter approval to lower their local homestead exemption, potentially making more homes taxable and increasing the proportion of a primary home’s value that is taxable.
House Bill 31 by Rep. Phillip DeVillier, R-Eunice, would phase out the state’s corporation franchise tax over five years. The current tax is $1.50 per $1,000 of taxable capital, up to $300,000, and $3 per $1,000 above $300,000.
Louisiana currently charges both a franchise tax and a corporate income tax. Critics say the franchise tax adds to the complexity of the overall tax system and penalizes capital-intensive, low-margin and unprofitable new firms. Read the full story.