Land Tax Exceptions in Louisiana
Louisiana identifies four types of land that shall be assessed for ad valorem tax purposes at ten percent (10%) of use value rather than fair market value:
- Agricultural land – land devoted to the production for sale, in reasonable commercial quantities, of plants and animals, or their products, useful to man and agricultural land under a contract with a state or federal agency restricting its use for agricultural production;
- Horticultural land – land devoted to the production for sale, in reasonable commercial quantities, of fruits, vegetables, flowers or ornamental plants, and horticultural land under a contract with a state or federal agency restricting its use for horticultural production;
- Marsh land – wet land other than agricultural, horticultural or timber land;
- Timberland – land stocked by forest trees of any size and species, or formerly having such tree cover within the last three years and not currently developed or being used for non-forest purposes, and devoted to the production, in reasonable commercial quantities, of timber and timber products, and timberland under a contract with a state or federal agency restricting its use for timber production
In order to be classified as “use value land,” the following conditions must be met:
- the land must meet the definition(s) criteria per above;
- the owner must file an application with the Parish Assessor certifying the land is eligible for use value assessment;
- in the case of agricultural, horticultural and timberland, the land must be at least three (3) acres in size, or have an average gross annual income of at least $2,000 in one or more of the designated classifications for the four proceeding years.
The Modern Soil Surveys published by the U.S. Department of Agriculture, National Resources Conservation Service, shall be used for determining the use value classification of agricultural, horticultural and timberland.
Besides the use value land tax exemptions and the Homestead exception (read more here), there are those properties that are exempt from ad valorem taxation:
- Public lands, and other property used for public purposes;
- Property of nonprofit corporations, or an association organized and operated exclusively for religious, dedicated places or burial, charitable, health, welfare, fraternal or educational purposes.
- Property of bona fide labor organization; and
- Property of an organization such as a lodge or club organized for charitable and fraternal purposes and practicing the same; property of a nonprofit corporation devoted to promoting trade, travel and commerce; property of a trade, business, industry or professional society or association if that property is owned by a nonprofit corporation or association.