For Louisiana and Caddo Parish (where Shreveport is located) there is a $75,000 homestead exemption. Thus $75,000
Question:
For Louisiana and Caddo Parish (where Shreveport is located) there is a $75,000 homestead exemption. Thus $75,000 is deducted from the assessed value and then the rate is multiplied by the value after the assessment to arrive at the tax. In Louisiana, only 10% of the residential property value is taxed. Also you should know that in Louisiana the homestead exemption is not applied to city taxes. The $75,000 exemption is the most of any state, and it was set at this level many years back when the state revenue was overflowing with taxes from the oil and gas industry.
This is no longer is the case, but it would be extremely difficult to get voters to lower or delete this exemption. A homeowner recently bought a $200,000 house. It is assessed for $180,000 in Caddo Parish. The house is inside the city limits. Please note that property taxes are calculated based on the assessed value, not the sale price. In this case then use $180,000.
1) What is the tax bill for Caddo Parish if the tax rate is 150 mills?
2)What is the tax bill for the City of Shreveport if the tax rate is 55 mills? (remember the homestead exemption does not apply for city tax?
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala