LOUISIANA

When purchasing a new home in Louisiana, you should consider the property taxes.

Property tax bills in Louisiana follow an annual cycle. They are generally sent out in November of each year and are due by December 31st. Any bills not paid by that date are considered delinquent. The taxes due are based on two factors: the assessed value of the property and local tax rate. Property taxes are calculated by multiplying the assessed value by the corresponding tax rate, which is set by various bond rates, mileage, and fees that are voted on in different districts established by the Legislature or Constitution.

The Parish Assessor’s Office must appraise and assess value on each property. In Louisiana, the constitution requires the assessor to place a value on and list all property that is subject to ad valorem taxes, which means according to value. The Assessor determines the assessed value, which is the value utilized as a percentage of Fair Market Value (FMV) as prescribed by law. Accordingly, the assessed value is calculated as a percentage of the Fair Market Value (FMV) as provided for by law.

  • Residential Land - 10% of FMV

  • Residential Improvements - 10% of FMV

  • Commercial Land  - 10% of FMV

  • Commercial Improvements - 15% of FMV

  • Business Moveable Property (Personal) - 15% of FMV

If the property is your primary home, you may deduct a maximum of $7,500 from the total assessed value before finding the taxable assessed value. For example, if your home is valued at $200,000 and assessed at 10%, say $20,000, and you are eligible and have signed for Homestead Exemption, use the following formula to assist you in calculating your taxes:

 

Assessed Value - Homestead Exemption (if applicable) x Tax Rate = Real Estate Taxes

Fair Market Value

$200,000

Times Assessment Ratio

 x .10

Assessed Value

$20,000

   

Less "Homestead Exemption"

- $7,500

Equals Taxable Assessed Value

 $12,500

Times Assumed Tax Rate

x .070

Equals Real Estate Taxes Owed

 $875

 

You may qualify to have your property taxes frozen if you meet the following criteria:

  • Are you 65 or older and adjusted gross income is $62,180 or less?

  • Did you celebrate your 65th birthday in the current year?

  • Do you have a service connected disability rating of 50% or greater as determined by the United States Department of Veterans Affairs?

  • Was the home owned and last occupied by members of the Louisiana National Guard or armed forces that were: Killed in Action, Missing in Action, or A Prisoner of War for longer than 90 days?

  • Are you permanently totally disabled as determined by a final non-appealable judgment of a court or as certified by a state of federal administrative agency with the authority to do so?

If you answered yes to any of the questions, please visit your Assessor’s office, as you may qualify for the special assessment.

*The preceding is meant to provide a general overview regarding commonly asked questions relating to taxes administered by the Louisiana Tax Commission. This is an interpretation of the tax laws and is not meant to function as formal guidelines, regulation, order or ruling. Recent legislation and announcements may have an effect on the accuracy of this information. Please consult with the Codes for the most up-to-date version of the law and procedures. This is being used for illustrative purposes only and should not be solely relied upon.

 

MISSISSIPPI

When purchasing a new home in Mississippi, you should consider the property taxes.  

Property tax bills in Mississippi follow an annual cycle. They are generally sent out in January of each year and are due by February 1st. Any bills not paid by that date are considered delinquent. Taxes are based on rates and assessed property values determined during the preceding year. Annual assessments by county or local authorities determine various bond rates, millages and fees that help pay for public services and are calculated using a variety of formulas. In Mississippi, all property is subject to a property tax unless it is exempt by law.

For example, if your primary home is valued at $200,000 and assessed at 10% (Class I Residential) and a Millage Rate of 105 and you qualify for a regular Homestead Exemption, use the following formula to assist you in calculating  your taxes:

 

True Value x Assessment Ratio x Millage Rate = Real Estate Taxes

True Value

$200,000

Times Assessment Ratio

 x .10

Assessed Value

$20,000

Times Millage Rate

 x .105

Equals Total Real Estate Tax

$2,100

Less Regular Homestead Exemption

 - $300

Equals Real Estate Taxes Owed

$1,800

 

*If the property is your primary home and you are over 65 or permanently disabled, you may be eligible for an Additional Homestead Exemption, which is not reflected in the illustration above.

 

The Tax Assessor will periodically appraise the properties in your county based on many variables, which include factors such as:

  • Lot size

  • Square footage of improvements

  • Number of bedrooms & bathrooms

  • Property fencing, decks, patios, etc.

State law requires that the County Tax Assessor appraise your property at its True Value. The Tax Commission assists and provides guidance to local governments with the appraisal of property so that the property taxes imposed are uniform and equal throughout the State of Mississippi.

To determine the Assessed Value, the appropriate assessment ratio is multiplied by the True Value of the property. This Assessed Value is then multiplied by the Millage Rate (local property tax rate where One Mill = 1/1,000 of a dollar) to determine the property taxes owed.

 

What’s an Assessment Ratio?

The assessment ratios for properties are set by the Mississippi Constitution. Properties are divided into five classes with separate assessment ratios:

  • Class I - 10% of true value

    • Single-family,

    • Owner-occupied,

    • Residential real property

  • Class II - 15% of true value

    • All other real property (except for real property covered in Class I or IV)

  • Class III - 15% of true value

    • Personal property (except for motor vehicles or for personal property covered in Class IV)

  • Class IV - 30% of true value

    • Public utility property [owned or used by public service corporations required by general laws to be appraised and assessed by the state or the county (excluding motor vehicles or railroad & airline property)]

  • Class V - 30% of true value

    • Motor vehicles

 

Some Frequently Asked Questions:

  • Who should I contact concerning my property tax bill?

 Contact your county Tax Collector

  • How do I know if I’m eligible for a homestead exemption?

Anyone owning a home in Mississippi may be eligible for homestead exemption. Eligible homeowners should make an application for homestead exemption with the Tax Assessor in the county where the home is located.

  • Are there exemptions from property taxes for elderly or disabled persons?

Persons 65 years or older and persons who are totally disabled, who are otherwise eligible for homestead exemption, are exempt from taxes on the first $75,000 of true value on their home.

  • How is agricultural property valued?

The State Tax Commission values agricultural property, including farmland and forestland. Soil type and productivity are criteria used for valuation.

*The preceding is meant to provide a general overview regarding commonly asked questions relating to taxes administered by the Mississippi Tax Commission. This is an interpretation of the tax laws and is not meant to function as formal guidelines, regulation, order or ruling. Recent legislation and announcements may have an effect on the accuracy of this information. Please consult with the Mississippi Code Annotated and Mississippi Administrative Code for the most up-to-date version of the law and procedures. This is being used for illustrative purposes only and should not be solely relied upon.