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Who is eligible for Homestead Exemption?
You may be eligible for homestead exemption if: You own and reside at the
property in question on the assessment date of January 1st of the taxable
year. You sign for the exemption in the manner prescribed by law. The
property in question is not an "undivided property" or a property which you
only have a "usufruct" or "right of habitation". The property in question is
not owned by a corporation, partnership, etc.
What
is the homestead exemption? In some cases the assessed value of property may be reduced by $7,500.00. This is limited to property that is owned and occupied by the same person as his or her homestead. This homestead exemption, and all of the requirements related to it, are contained in the Louisiana Constitution and cannot be changed by the assessor, parish council, or even the state legislature.
The homestead exemption does not apply to municipal property taxes. Also, the homestead exemption provisions in the Louisiana Constitution contain many rules that bear upon the size and type of property that can be called a homestead, and the relationship of the persons who own and occupy the property. Therefore, if protecting your homestead exemption is important to you, then careful planning is advised before acquiring or transferring any homestead property.
You must apply for homestead exemption with the assessor's office, it does not happen automatically even if you own and occupy the property as a homestead and meet all other requirements.
The Louisiana Constitution contains the following homestead exemption provisions:
1. The homestead exemption may apply to land even if it is classified and assessed at use value, with or without timber on it.
2. The homestead exemption may apply to a former spouse (in cause of divorce) as well as a surviving spouse (in case of death) when the homestead is occupied by the surviving spouse or the former spouse and the title to the property is in the name of:
A. The surviving spouse as owner of any interest in the property, or in the name of either or both of the former spouses;
B. The surviving spouse as a usufructuary; or
C. A testamentary trust (trust established in a will) established for the benefit of the surviving spouse and the descendants of the deceased spouse or the surviving spouse.
3. The homestead exemption may apply to property owned by an irrevocable trust (does not apply to a revocable trust) when the principal beneficiary (person entitled to receive property when the trust comes to an end) is the same person as the settlor (the person who creates the trust) and those persons were the immediate prior owners of the property and the property is occupied by the principal beneficiary. Also, the trust, or the property would have qualified for a homestead exemption prior to being placed in the trust, or the property would have qualified for homestead exemption if the property were not owned by the trust.
4. Homestead exemption may apply to property where it is subject to a usufruct which has been granted to no more than two usufructuaries who were the immediate prior owners of the property and the homestead is occupied by the usufructuary.
5. Homestead exemption can only extend to natural person (human beings) and to property placed in irrevocable trust created by natural persons in which the beneficiaries of the trust are natural persons. All other provisions in paragraph 3 above must also apply if you are dealing with a trust.
6. Homestead exemption may apply to property that is owned by more than one person in indivision but it is limited to the prorata ownership interest of the person or persons occupying the homestead.
7. No homestead exemption shall be granted on property that is subject to a bind for deed which is occupied by the perspective purchaser in the bond for deed contract. However, if a homestead exemption has been granted in such a situation prior to June 20, 2003, then the exemption shall remain valid as long as that perspective purchaser continues to occupy the premises.
8. No person shall be entitled to more than one (1) homestead exemption in this state.
9. Homestead exemption does not apply to municipal taxes.
Homestead Form:
If you own property which you use as your permanent residence, you may file for homestead exemption. If granted, this exemption could reduce the taxable fair market value of your homestead by up to $75,000. As a result, you would enjoy a substantial savings on the taxes levied against your property by the various taxing authorities. Regular filing begins on January 1 and ends on March 1 each year. So that you might avoid long lines at the regular filing time for homestead exemption, our office now accepts pre-filed applications beginning March 2 through December 31.Once obtained, so long as there are no changes to your deed, your homestead exemption will be renewed automatically.
Louisiana Special Assessment Level:
La. Const. Art. VII, Section 18(G) (G)(1) Special Assessment Level
1. The assessment of residential property receiving the homestead exemption which is owned and occupied by any person or persons sixty-five years of age or older and who meet all of the other requirements of this Section shall not be increased above the total assessment of that property for the first year that the owner qualifies for and receives the special assessment level:
A. people who are sixty-five (65) years of age or older;
B. people who have a service connected disability rating 50% or more by the United States Department of Veterans Affair;
C. members of the armed forces of the United States or the Louisiana National Guard who owned and last occupied such property who are killed in action, or who are missing in action or are prisoner of war for a period exceeding 90 days or;
D. any person or persons permanently totally disabled as determined by final non-appealable judgment of a court or as certified by a state or federal administrative agency charged with the responsibility for determinations regarding disability.
(ii) Any person or persons shall be prohibited from receiving the special assessment as provided in this Section if such person's or persons' adjusted gross income, as reported in the federal tax return for the year prior to the application for the special assessment, exceeds $65,891 for tax year 2011. For persons applying for the special assessment whose filing status is married filing separately, the adjusted gross income for purposes of this Section shall be determined by combining the adjusted gross income on both federal tax returns.
(iii) An eligible owner shall apply for the special assessment level by filing a signed application establishing that the owner qualifies for the special assessment level with the assessor of the parish or, in the parish of Orleans, the assessor of the district where the property is located.
(b) Any millage rate applied to the special assessment level shall not be subject to a limitation.
2. The special assessment level shall remain on the property as long as:
(a) That owner, or that owner's surviving spouse who is fifty-five years of age or older or who has minor children, remains on the property;
i. the owner who has a service connected disability if 50% or more, or that owners's surviving spouse who is 45 years of age or older or who has minor children, remains the owner of property;
ii. the spouse of the owner is killed in action remains the owner of the property;
iii. the first day of the tax year following the tax year in which an owner who was missing in action or was a prisoner of war for a period exceeding 90 days is no longer missing in action or a prisoner of war; and
iv. even if the ownership interest of any surviving spouse or spouse of an owner who is missing in action as provided for this Subparagraph is an interest in usufruct; and
(b) The value of the property does not increase more than twenty-five percent because of construction or reconstruction.
Note: For the year 2008, any person or persons shall be prohibited from receiving the special assessment as provided by Section 18(G) if such person's or persons' adjusted gross income, as reported in the federal tax return for the year prior to the application for the special assessment, exceeds sixty-five thousand, eight hundred and ninety-one ($65,891) dollars.
The Freeze is
subject to the following conditions:
more by the United States Department of Veterans Affairs;
who owned and last occupied such property who are killed in action, or who are missing in action or are a prisoner of war for a period exceeding Ninety (90) days; or
judgment of court or as certified by state or federal administrative agency charged with the responsibility for making determinations regarding disability.
Instructions for applying for the Special Assessment Level:
1. Print out, complete and sign form 2. Attach copy of drivers license as proof of date of birth 3. Attach copy of income tax return or proof of your Adjusted Gross Income
Mail to:
St. Mary Parish Assessor's Office P.O. Box 264 Franklin, LA 70538
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