Homestead exemption hike again moves forward in Louisiana

By Rob Masson

Source: FOX 8

May 13, 2025

BATON ROUGE, La. (WVUE) – A proposal to increase Louisiana’s homestead exemption for the first time in more than four decades is gaining traction at the State Capitol.

The measure, authored by Rep. Matt Willard (D-New Orleans), would allow local parishes to increase the homestead exemption from the current $75,000 to as much as $125,000 of a home’s assessed value.

“It has not increased since 1980, and when you factor in inflation and the rising cost of homeowners insurance, it’s long overdue that we increase this homestead exemption,” said Rep. Willard.

The bill, which passed unanimously in the House Civil Law Committee, would amend the state constitution. That means it must ultimately be approved by a statewide vote.

“It is a constitutional amendment, which means voters statewide would have to approve the increase to the homestead exemption,” Willard explained. “If that’s approved, the local parish government could increase the homestead exemption. It would not require a second vote of the people.”

The exemption would be adjustable on a parish-by-parish basis. Each local government could set its exemption between $75,000 and $125,000, depending on what it can afford.

Willard estimates that homeowners in New Orleans could save as much as $800 per year in property taxes if the exemption is increased to the maximum level. He argues that kind of relief could help slow the city’s declining population.

“In five years, we have a new census, and if New Orleans’ population continues to decline, it could mean reduced federal funding and put our congressional seat in jeopardy,” Willard said.

The bill passed unanimously in the House Civil Law Committee.

The nonpartisan Bureau of Governmental Research has urged lawmakers to study the bill’s financial impact, including how a reduced property tax base might shift costs to renters or businesses.

If approved by the full Legislature, the measure will go before Louisiana voters in a statewide election next November.

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