Summary:The Louisiana Tax Commission staff proposes to amend Chapter 1, Constitutional & Statutory Guides to Property Taxation, §101.G. – Special Assessment Level, to update the adjusted gross income to $72,134.

COMPUTATION FOR 2017 SPECIAL ASSESSMENT LEVEL

FOR CITIZENS AGE 65 AND OLDER

Consumer Price lndex March,2016238.132

Less Consumer Price lndex March,2015236.119

Decrease 2.013

Percentage Decrease from March, 2015 .009

(2.013/236.119)

2016 Special Assessment Level$71,490.96

$71,490.96 x (.009) = $72,134.38

2017 Special Assessment Level$72,134.38

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Summary:The Louisiana Tax Commission staff proposes to amend §111, Criteria for Determining Fair Market Value, as follows: (struck through are deletions and redlined are additions)

§111.Criteria for Determining Fair Market Value

C.The fair market value of real and personal property shall be determined by the following generally recognized appraisal procedures: the market approach, the cost approach, and/or the income approach.

1.In utilizing the market approach, the assessor shall use an appraisal technique in which the market value estimate is predicated upon prices paid in actual market transaction and current listings.

2.In utilizing the cost approach, the assessor shall use a method in which the value of a property is derived by estimating the replacement or reproduction cost of the property; deducting therefrom the estimated depreciation; and then adding the market value of the land, if any.

3.In utilizing the income approach, the assessor shall use an appraisal technique in which the anticipated net income is processedcapitalizedto indicate the capital amount of the investment which produces the net income (R.S. 47:2323).

D.When performing a valuation of any affordable rental housing property, the assessor shall not consider any of the following in determining fair market value:

1.Income tax credits available to the property under Section 42 of the Internal Revenue Code.

2.Below-market interest rate on financing obtained under the Home Investment Partnership Program under the Cranston-Gonzales National Affordable Housing Act, or the Federal Home Loan Bank Affordable Housing Program established pursuant to the Financial Institution Reform, Recovery, and Enforcement Act of 1989.

3.Any other federal, state, or similar progam intended to provide or finance affordable rental housing to persons of low or moderate income and requiring restricted occupancy and rental rates based on the income of the persons occupying such housing.

Summary:The Louisiana Tax Commission staff proposes to amend §121, Reappraisal as follows: (struck through are deletions and redlined are additions)

§121.Reappraisal

A.Real property, as defined in R.S. 47:2322, shall be reappraised and reassessed at leastonceevery four years.

B.Personal property, as defined in R.S. 47:2322, shall be reappraised and reassessed every year.

C.Incorporeal real or immovable property, as defined in R.S. 47:2322 and R.S. 47:1702, shall be reappraised and reassessed at leastonceevery four years.