New Orleans Property Taxes: What to Know
Knowing about your New Orleans and surrounding area property taxes is simple after you know the basics. Here are some things that homeowners in Orleans, Jefferson, St. Tammany, and Tangipahoa Parish should know.
New Orleans Property Taxes
Property Assessment
For any local government, taxes provide an important source of revenue. This revenue goes towards paying for schools, fire fighters, law enforcement, parks, etc. In Louisiana, the parish assessor will review the value of the your land and buildings at least every 4 years. In St. Tammany Parish, the year 2020 is a reassessment year.
The assessed value may change significantly if the property has been sold or if there has been an improvement added. They will use three approaches to arrive at the assessed value:
- Market or Sales Approach
- Cost
- Income
The owner has the right to review the change in assessed value over prior years. They can dispute the value if they feel it is not correct. The time allowed for this review is limited and is the only time that you can appeal the assessed value. It typically occurs in late July to early September depending on the Parish. In St. Tammany Parish, the deadline to submit an Application for Assessment Review is Monday, August 29, 2022.
Property Tax Bills
In all Louisiana Parishes except for Orleans, the property tax bill is due by December 1st and is considered late after December 31st. This tax bill is for the year that has just ended. When you sell your house, the prorated taxes up to the date of closing will be deducted from the seller proceeds and credited to the buyer. The buyer is given credit for these funds since they will have to pay the tax bill at the end of the year.
In Orleans Parish, property taxes are due on January 1st and late after January 31st. These taxes are for the year that is just starting. When buying or selling a house in Orleans Parish, the property taxes are prorated on the date of sale and will be a credit to the seller. This is because the seller has already paid the full amount of the property taxes at the beginning of the year.
If payment is not made within the allowed time, the Parish will post a final listing of properties eligible for tax sale. You will also get a visit with a notice from your friendly Sheriff’s deputy. This gives homeowners one last chance to make the late payment. Afterward, these will be made available to the public so that the unpaid taxes can be collected.
Tax Sales
Tax sales are used by the city or parish to collect taxes when the owner doesn’t pay. In Louisiana, each Parish is different as to when and where this is done. In St. Tammany Parish, the Sheriff’s Office collects payments for both the parish and cities.
The tax collector will hold the annual property tax sale which is typically in late July. In 2022, the tax sale will actually be held on August 1. This tax sales attracts many investors from around the country who come to Louisiana and pay millions of dollars to profit on this process. In St. Tammany, the tax sale was always held in person until the 2019 tax sale in 2020 which was online for the first time due to COVID-19.
If a property is listed for tax sale but does not receive any bids, it will then be adjudicated to the Parish. This is as if the Parish were the high bidder at the tax sale.
After the Tax Sale
There are two things to keep in mind regarding any property that has been sold for nonpayment of property taxes:
- The property can be redeemed within a limited time period. You’ll need to submit a Request For Redemption.
- After a certain time period, a property owner can lose their entire asset for failure to redeem the property from a tax sale.
Within the redemption period, the property owner would need to contact the Tax Collector to obtain a payoff amount. The owner will need to pay:
- Taxes
- Penalties
- Interest
- Tax Collector Cost
As an example, if a tax deed were redeemed after one year, that owner would have to pay the tax deed owner the tax owed plus 17 percent interest (five percent plus one percent per month).
More Information
If you need additional information regarding Orleans property taxes or surrounding parishes, feel free to contact us. Fairview Home Buyers can provide recommendations on local resources.
We can also help you stop paying property taxes and other expenses by making a cash offer to buy a house you no longer need or want. We buy houses for cash and can pay off the delinquent taxes from proceeds at closing. This can help prevent your property from going to tax sale or being lost altogether.