Committee advances property-tax exemption for rehabilitating blighted properties

Representative Henry told senators HB 217 (statutory) and HB 214 (constitutional ballot language) are meant to give local governments a tool to encourage rehabilitation of blighted properties. "Once you have proven that it has been rehabilitated according to the city or municipality or parish governing authorities code of ordinances, and their building code, you could then get that property tax exemption, which is 75% of property tax abatement for 20 years," Henry said.

Henry presented a modeled example from his district in which a property’s assessed value rose from $16,000 (about $136 in taxes) to $83,000 (about $710 in taxes) after rehabilitation; under the proposal the owner would have paid about $177 in annual taxes, producing an estimated $10,000 tax reduction over 20 years for the homeowner while leaving municipalities with most of the revenue.

Committee members generally supported the concept but urged guardrails. Senator Jenkins, among others, asked for clarity on whether the 75% figure and the 20-year duration are mandatory; Henry said the statute reads "up to 75%" and "not to exceed 20 years," and that local governing authorities would elect the specific level and duration.

Senator Morris warned of a slippery slope of exemptions that could shift tax burdens; Representative Henry and members said they would work to provide a framework with the Police Jury Association, the Louisiana Municipal Association and local assessors to prevent abuse.

Both HB 217 and HB 214 were moved and reported favorable by the committee with no objections. Committee members asked the sponsor to consider floor amendments to pin down implementation details and to coordinate post-session guidance for local governments.

Next steps: HB 217 and HB 214 to proceed to the Senate floor; sponsor and stakeholders will prepare implementation guidance and consider clarifying amendments.