Homestead Exemption For Property Taxes In Louisiana
About
About The Homestead Exemption For Property Taxes In Louisiana
The Louisiana Homestead Exemption provides a significant financial benefit for homeowners in the state. It allows for the exemption of property taxes on the first $75,000 of a home's fair market value, which translates to $7,500 of the home's assessed value. This exemption plays a crucial role in reducing the property tax burden for Louisiana residents, making homeownership more accessible and affordable.
For example:
Suppose you own a home in Louisiana that is assessed at a fair market value of $200,000. In Louisiana, residential properties are typically assessed at 10% of their fair market value for property tax purposes. So, the assessed value of your home would be 10% of $200,000, which is $20,000.
Now, with the Louisiana Homestead Exemption, the first $7,500 of the assessed value is exempt from property taxes. In this case, you would subtract $7,500 from the $20,000 assessed value, leaving $12,500 as the taxable value of your property.
The property tax rate (often expressed as a millage rate) in your area will then be applied to this taxable value to calculate your annual property tax bill. The Homestead Exemption effectively lowers your tax bill by reducing the portion of your home's value that is subject to taxation.
What You Need To Know
To get a homestead exemption, these things need to happen:
- The person asking for the exemption must be an actual person or a trust set up by a person.
- This person must own the property.
- They must live on the property they own.
- The tax that this exemption applies to should be from the state, local area, or a specific property tax.
The homestead exemption can also apply to these situations:
- If the owner of the property passes away, their spouse can still get the exemption.
- This also includes if the surviving spouse has the right to use the property (known as "usufructuary").
- If there's a trust set up in a will for the benefit of the surviving spouse and the children of the deceased or surviving spouse.
- If the property is in a trust and the main people who benefit from the trust (beneficiaries) are the ones who set up the trust and were the last owners of the property.
- If the property is under a "usufructuary" arrangement for no more than two people who were the last owners.
- If the property is owned by several people (indivision), but only for the part owned by the person living there.
- If someone is renting and living in a house or mobile home (but doesn’t own the land it's on), they can still get the exemption.
The homestead exemption can't be used in these situations:
- If you're buying the property through a "bond for deed" agreement (where you don’t get the deed until you finish paying).
- If the property is owned by a business partnership or a corporation.
- If the property is used for business reasons.
- If part of the property is used to make money and the owner doesn’t live there as their main home.
- If you have an agreement to buy the property but the title isn't in your name yet, like lease-to-own deals.
When you qualify for a homestead exemption, it means you get a special tax break for your main home. But, it's important to know that you can only use this tax break for one house at a time. This rule is there to make sure the exemption is used fairly, for people's primary residences and not for multiple properties or vacation homes.
So, if you have more than one house, you can only choose one (usually the one you live in most of the time) to get this tax benefit. This is to ensure that the tax relief goes to your main living place, not to all the properties you might own.
No, usually you don't need to re-apply for a homestead exemption every year. Once you've applied and been approved for it, the exemption typically stays in place as long as you keep meeting the requirements (like living in the home).
How To File For The Homestead Exemption
How To File For The Homestead Exemption
These are the general steps to apply for the homestead exemption for a property. Each parish tax assessor's office may have a different procedure, steps, or forms to apply for the homestead exemption. It is important to contact the office to ensure that you follow the correct steps to apply for the homestead exemption.
Steps To File For The Homestead Exemption
To get the homestead exemption, you need to both own and live in the house as your main home. Even if you own multiple houses, you can only get this tax break for one house, and it can reduce your property taxes on up to $7,500 of the house's assessed value. If you're married, you and your spouse together can only have one exemption for your household.
Your house can't be owned by a business-like a corporation or partnership. Also, you can't get the exemption if you bought the house but the seller still technically owns it until you finish paying for it (like in Bond-For-Deed deals).
There are extra homestead exemptions for disabled veterans and for the surviving spouses of certain law enforcement officers or emergency responders who died while on duty.
You'll need to collect essential documents such as proof of ownership (like a property deed or recent tax bill) and your Louisiana driver's license or state ID. These documents should establish your residency status.
If you are living in a home you inherited and you don't have a title or property deed, then you may need to file a succession.
Get the homestead exemption application from your local parish tax assessor's office. Fill out the form accurately, providing information about yourself, your property, and your residency status.
Submit the application form, completed to your local parish tax assessor's office. You can submit the form in person or by mail, depending on the preferences of the local tax assessor's office. Check with your assessor's office to see what steps you may need to follow to apply. You may need to set up an appointment if you are submitting in person.
After you submit your application there will be a processing period during which the assesor's office reviews your application. You'll receive a confirmation or denial letter in the mail once this process is complete. If your application is approved you'll benefit from the reduced tax bill.
The homeowner should keep a copy of the card for their records indicating that their property is still receiving the homestead exemption.
Other Issues To Consider
Other Issues To Consider
These are some of the other issues to consider related to the Homestead Exemption in Louisiana.
Other Issues To Consider
If your home is damaged in a disaster (like a hurricane or flood) and you can't live in it by the end of the year, you can still get a tax break (homestead exemption) for your home. To do this, every year you need to tell the local tax office (assessor) that you plan to fix your home and move back within five years.
If a spouse passes away, the surviving spouse can still receive the full homestead exemption on their primary residence. This applies if the surviving spouse continues to live in the home. The exemption is valid whether the surviving spouse has full ownership, partial ownership, or has been granted the right to use the property (usufruct).
A former spouse can also benefit from the homestead exemption. This is applicable if they continue to occupy the home after the divorce. The same conditions apply regarding ownership or usufruct rights as with surviving spouses.
Filing a succession when it involves a property with a homestead exemption is about legally transferring the property and potentially continuing the tax benefits with the new owner if they qualify.
If the deceased owned a home where they claimed a homestead exemption (a tax break for their primary residence), the succession process will address what happens to this exemption.
The homestead exemption can sometimes be transferred to the heir or beneficiary who inherits the home, especially if they plan to use it as their primary residence. This means they could continue to benefit from the tax reduction.
To handle this, you typically need to file legal documents with a court. This may involve proving the deceased's ownership of the home, their use of the homestead exemption, and their entitlement to inherit the property.