RÉSUMÉ DIGEST
ACT 390 (SB 165) 2021 Regular Session Smith
Prior law established the mechanism by which ad valorem property tax millage rates are
automatically adjusted in response to changes in the tax base resulting from reassessment
or a change in the homestead exemption. Both the millage rate imposed in the year before
the change in the base, as well as the maximum authorized millage rate, are adjusted so that
the same amount of taxes is collected in the year after reappraisal as was collected in the
prior year.
Prior law authorized an increase in a millage rate up to the prior year's maximum authorized
rate by 2/3 vote of its governing body without voter approval. The maximum authorized rate
is adjusted every four years due to statewide reassessment and may also be adjusted due to
a change in the homestead exemption.
New law allows, beginning in the 2023 ad valorem tax year, a taxing authority to increase
its millage rate up to the maximum authorized millage rate authorized by the constitution
and approved by the taxing authority until the authorized millage rate expires rather than the
prior law's maximum authorized rate in effect the prior year.
New law prohibits a taxing authority from increasing the millage rates in excess of its
adjusted millage rates established for the 2021 ad valorem tax year and 2020 ad valorem tax
year in Orleans Parish.
New law requires that if an immediate subsequent reassessment has an increased taxable
value, the adjusted maximum millage rate be decreased to the maximum millage rate for the
2020 reassessment year, or the 2019 reassessment year for Orleans Parish provided by the
constitution and approved by the taxing authority.
Effective if and when the proposed amendment of Article 7, Section 23(C) of the
Constitution of Louisiana contained in the Act which originated as SB 154 of the 2021 R.S.
is adopted at the statewide election to be held on November 8, 2022, and becomes effective.
(Amends R.S. 47:1705(B)(1)(a) and (b)(i))


Statutes affected:
SB165 Original: 47:1705(B)(1)
SB165 Engrossed: 47:1705(B)(1)
SB165 Reengrossed: 47:1705(B)(1)
SB165 Enrolled: 47:1705(B)(1)
SB165 Act 390: 47:1705(B)(1)