Property Value and Assessed Valuation
The assessed value of your property is determined by analyzing sales information of similar homes in your area. Your residential property then receives an assessed valuation of 10% of its estimated property value. For example, an estimated property value of $100,000 would calculate to an assessed value of $10,000.
Taxable property is divided into two classes. Real property includes land and all buildings, structures, improvement to the land, and mobile homes. Personal property includes machinery and equipment, fixtures, furniture, and other items that are movable in nature and utilized in a business. Household goods, vehicles licensed to operate on public highways, and personal effects are exempt from property taxation.
Mobile homes are taxable only on private property. If a mobile home is in a mobile home park, then it is not subject to ad valorem taxes.
Millage
What determines the millage rate applied to your property? The millage rate in East Baton Rouge Parish varies from area to area, depending on the location of the property. Generally speaking, property within the city limits is usually subjected to the same rate, with the exception of property located in the downtown development district, the levee district, and the Comite River Diversion Canal district. Property outside of the city limits may have additional millages to cover items such as fire protection, road lighting, garbage, and the Comite River Diversion Canal.
Millage is the percentage of value that is used in calculating taxes. A mill is defined as 1/10 of 1 percent and is multiplied by the assessed value after any exemptions have been subtracted to calculate the taxes. (FOR EXAMPLE: If the tax rate is 100 mills and the total assessed value is $10,000 with no exemptions, the taxes would be calculated as $10,000 x .100 = $1,000.00.) If you would be calculating taxes on the same property and include a homestead exemption, the taxes would be ($10,000 – $7,500) x .100 = $250.00. This is extremely beneficial to the residents of the parish to be allowed to take advantage of this exemption. However, it is important to remember that the homestead exemption does not apply to municipal taxes.
Many times, as a voter of East Baton Rouge Parish going to the voting polls, you are asked to vote on millages for different government agencies or municipalities in your area. Each time a millage is passed, it ensures that the government agency will either increase revenue or if it is a renewal, it will ensure that that agency keeps receiving revenue for the number of years stated in the proposition. It is important to remember that each time a new millage is passed, your property taxes will increase.
In addition to a millage rate on your tax bill, many parts of the Parish now levy annual fire district fees, crime district fees, weed liens and litter court fines. Please be sure to include these additional amounts when paying your taxes.
Calculating Your Taxes
Please note: The following are examples with arbitrary Millage Rates. Please refer to the Millage Rates applicable to your particular property. These rates vary by location within the parish.
Once the assessed value of an asset is determined, the amount of taxes owed on that asset
can be calculated. Louisiana Law dictates that all Land – commercial and residential – is assessed
at 10% of market value. Residential buildings are assessed at 10% and Commercial buildings
are assessed at 15% of market value. Commercial personal property, also known as movable
property, is assessed at 15% of market value.
To calculate taxes, the millage rate is applied to the assessed value. Remember that 1 mill is
equal to $0.001 of value. Therefore, if the millage rate is 89.50 mills, then the tax amount due
on $17,500 assessed value would be $1566.25. (See Example 1)
Example 1
Residential Property without Homestead Exemption
Land market value = $ 35,000 x 10% = assessed Land value = $ 3,500
House market value = $ 140,000 x 10% = assessed House value = $ 14,000
Total market value = $ 175,000 Total assessed value = $ 17,500
Millage Rate 89.50 = x 0.0895
Parish taxes owed = $1566.25
Example 2
Residential Property with Homestead Exemption
Land market value = $35,000 x 10% = assessed Land value = $3,500
House market value = $140,000 x 10% = assessed House value = $14,000
Total market value = $175,000 Total assessed value = $17,500
Homestead Exemption – $7,500
Net assessed value $10,000
Millage Rate 89.50 = x 0.0895
Parish taxes owed = $895.00
(If Property is located inside City Limits)
City Taxes:
Total Assessed value = $17,500
City Millage Rate 10.00 x $0.010
City taxes owed = $175.00
Remember that the homestead exemption does not apply to municipal taxes. Municipal (City)
property taxes would be levied on the $17,500 in assessed value for the above home.
For 10.00 mills in municipal tax, the taxpayer would owe an additional $175.00.
Example 3
Commercial Property
Land market value = $35,000 x 10% = assessed land value of $3,500
Building market value = $140,000 x 15% = assessed building value of $21,000
Total market value = $175.000 Total assessed value = $24,500
Millage Rate 89.50 = x 0.0895
Parish taxes owed = $ 2,192.75
Using the values from Example 2, with a tax rate of 89.50 mills, and applying homestead
exemption to the residential property, one should note the difference in the tax amount
owed by a homeowner (Example 2) versus the owner of a commercial building with the same market value.
