BATON ROUGE, La. — State Treasurer John Fleming is calling for a substantial increase in Louisiana’s homestead exemption, arguing that the exemption has failed to keep pace with rising home values and property tax burdens.
Fleming did not specify a proposed exemption amount or a timetable for legislative action. He said he would work with legislators and state and local officials to develop an increase while considering the financial needs of schools, local governments and other public services.
“Louisiana families work hard to buy a home, pay their mortgage and build equity for their future. They should not be forced to keep paying higher property taxes simply because their home’s value has increased. Louisiana needs to strengthen the homestead exemption and provide meaningful property tax relief to homeowners,” Fleming said.
Louisiana’s homestead exemption covers $7,500 of a qualifying home’s assessed value. With residential property assessed at 10% of fair market value, that amounts to an exemption on the first $75,000 of market value.
According to Fleming’s announcement, the current exemption was established in 1980 and has not increased in 46 years. Fleming said an inflation-adjusted exemption would be approximately $35,000 in assessed value.
Fleming pointed to efforts to expand homeowner exemptions in Texas and Florida as examples Louisiana should consider.
Any Louisiana proposal, he said, should account for the effects on public services supported by property taxes, including education, law enforcement and fire protection. His announcement did not include estimates of homeowner savings, potential revenue losses or a mechanism to offset those losses.
“Property tax relief and responsible government are not mutually exclusive,” Fleming said.
Fleming framed the proposed increase as a way to improve housing affordability and help homeowners retain more of their income as property values rise.
“Homeownership is one of the most important ways families build financial security and stability,” he said.