Constitutional Amendment to authorize the local governing authority of a parish to provide an increase to the homestead exemption. (2/3-CA13s1(A)) (OR SEE FISC NOTE LF RV See Note)

SB 88 proposes a constitutional amendment that would add Article VII, Section 21(P) to the Louisiana Constitution to create an optional additional homestead exemption for property owners in parishes that choose to adopt it. Currently, Louisiana law provides a homestead exemption that exempts the first $7,500 of assessed valuation from ad valorem property taxes. This amendment would allow each parish governing authority to approve an additional exemption of up to $22,500 of assessed valuation for properties already receiving the homestead exemption, potentially exempting up to $30,000 of assessed valuation in total. The exemption is entirely discretionary for each parish, taking effect only upon approval by the parish governing authority.

The practical effect of this amendment would be to reduce property tax revenue in any parish that chooses to implement the enhanced exemption. Homeowners who qualify for the homestead exemption would benefit from lower property tax bills if their parish adopts the additional exemption, with the magnitude of benefit depending on the millage rates and the amount of additional exemption the parish approves, up to the $22,500 maximum. Parish tax authorities that implement the exemption must absorb the resulting loss in ad valorem tax revenue themselves and cannot shift that burden to other taxpayers through millage increases or reassessments. This constraint means that parishes must choose between foregoing the revenue or finding other sources of funding to maintain current service levels.

The amendment operates within Louisiana's constitutional structure for ad valorem tax exemptions, which are strictly defined in Article VII of the Constitution. Existing constitutional law already provides the $7,500 homestead exemption under Section 20, and the amendment adds an optional supplemental exemption as a new subsection of Section 21, which governs other property exemptions. The amendment includes a constitutional safeguard prohibiting implementation from triggering property reappraisals or millage adjustments that might otherwise increase taxes on other taxpayers to compensate for lost revenue. The proposed amendment requires approval by Louisiana voters at the general election scheduled for November 3, 2026, with passage requiring a two-thirds majority in both the Senate and House of Representatives, as specified in the joint resolution.