LMR_Feb_2019

Foresight is 2020:
Coming Reassessment Presents a Call for Action
BY MATT MULLENIX
While next year promises to be a blockbuster for big
decisions in the public sphere, 2020 marks an important
four-year milestone for Louisiana municipalities and
their citizens. The mandatory statewide reassessment
of property values and millage rates occurs next year—
which makes 2019 your municipality’s last opportunity to
levy, collect, and secure the maximum authorized rates.
The Louisiana Constitution mandates that all taxable
property be reappraised at least once every four years,
a process affecting both the aggregate value of homes
and businesses as well as the millage rates levied by
state taxing districts and local governments.
These rates rise and fall according to assessed property
values, so that collected revenues remain neutral. In
theory, this system strikes a balance between individual
taxes and municipal coffers that sustains a level of public
service benefitting all.
But in practice, the process is fraught with the specter
of a perceived tax increase, an often unfounded fear
that nonetheless prevents many local governments from
taking simple steps to maintain the legally approved
maximum rate. As a result, nearly half of all Louisiana
municipalities may leave additional revenue uncollected.
According to property tax consultant Kristyn Childers
of Millage Management LLC, municipal councils may
(and should) vote to preserve millage rates at the legal
maximum. This can be done in any year prior to the next
reassessment by following the legal procedure known
as a “roll forward,” which establishes the authorized
maximum millage rate, typically the same rate as the
previous reassessment.
But this opportunity—crucial to preserving many
public services from year to year—may disappear for
municipalities that fail to roll forward prior to the 2020
reassessment.
According to Childers, this happens because
municipalities that levy less than the maximum rate
stand to lose additional revenue now and in the future.
As the Louisiana Legislative Auditor’s office confirms,
the “prior year’s maximum” millage is lost if the taxing
authority chooses not to roll forward during the
appropriate time frame.
What can elected officials do to preserve revenues and
maintain standards of public service their constituents
expect?
“Take stock of
your current
millage rates
and note
trends in your
municipality’s
tax revenue
over time,”
says Childers.
Local
governments
that fail to
preserve their
maximum
LaMATS recommends municipalities begin
the Roll Forward process no later than March
1, 2019, to assure all legal requirements are
properly met prior to the 2020 Reassessment.
millage rates in periods of relatively high property value
can find themselves at a loss for options should values
fall in subsequent reassessments.
Childers recommends rolling forward but cautions that
the process takes approximately three months, so the
sooner a municipality begins, the better. “Don’t let your
community’s chance for additional revenue wither on the
vine.”
LaMATS and Millage Management have partnered
to provide free consultations to any Louisiana local
government seeking advice on how to accurately levy ad
valorem taxes from year to year and how best to prepare
for the 2020 statewide reassessment. To schedule an inperson
meeting with Kristyn Childers, contact LaMATS at
(225) 344-5001.
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LMR | February 2019