Viewpoint: Property taxes may rise in 2024 for many New Orleans homeowners

Preservation Resource Center

Homeowners in most Uptown neighborhoods are likely to see an increase in their property taxes.

New Orleans property owners in select neighborhoods — including Uptown areas — should anticipate paying higher taxes due in 2024 due to the increased valuation of properties in those areas, according to longtime Orleans Parish Assessor Erroll Williams.  Williams and his staff of in-house appraisers have spent the past year reviewing every parcel of commercial and residential property on the parish tax rolls. 

Louisiana law requires a re-evaluation on all properties once every four years. Because 2024 is a quadrennial year, Orleans Parish assessments for tax years 2024-27 will reflect market values as of Jan. 1, 2023. A similar review took place in 2019. 

State law now requires all tax recipient agencies to reduce their millage rates when a quadrennial revaluation results in an increase in taxable assessments, as is the case this year, according to an Assessor’s Office press release. This is referred to as a “mandatory rollback.” The intent of the rollback is to keep funding streams level for tax recipient agencies. If a quadrennial revaluation were to result in a reduction of total taxable assessments, millage rates would automatically increase to offset the decrease.

However, tax recipient agencies may vote to raise the millage rates back up to where they were before the automatic roll back. When this happens it is referred to as a “roll forward.”

Williams says his research indicates that 3,000-square-foot to 4,500-square-foot homes in Uptown neighborhoods are now selling for $1.1 million to $1.5 million. “They previously sold in the $500,000 to $700,000 range. It’s a substantial increase,” he said. Those same houses are listed on the tax rolls at $900,000 to $1.2 million.    

The value of properties in the Lakeview neighborhood are following the same pattern, Williams explained. In contrast, the market is flat in New Orleans East, with only modest increases, except for the million dollar homes in that area. 

Williams believes that property owners in Mid-City could see an uptick in tax rates because some homes have begun to sell for $350,000 to $500,000. “Those are the singles and doubles in highly desired neighborhoods,” Williams said.  

Sections of Gentilly are also “live,” according to Williams. He points to the Mirabeau corridor between Bayou St. John and Pratt Drive, where the cost of a coveted vacant lot has grown to such previously unheard of prices as $120,000. On the other side of Pratt Drive the value of lots is also on the upswing and now go for upwards of $50,000. 

Williams is bullish on the St. Roch neighborhood close to Gentilly Boulevard.  Though there aren’t any million dollar home sales in that area yet, property values are “pretty stable.” 

In Lakewood South, Williams claims sales prices have risen “like never before” to the million dollar range. In the French Quarter, Williams described property tax rates as “all over the place” based on whether the property is a condo, a townhouse or a single-family residence. He estimates that a 4,000-square-foot single-family home in the Vieux Carre is now valued at $1.2 to $1.5 million, and taxed accordingly. 

Since the Central Business, Warehouse and South Market districts are predominately condominiums, change in property taxes is a reflection of the number of sales at individual condo properties. The addition of a deeded garage parking or a deeded storage unit will always raise the selling price and taxes.

Sales prices were “already up” in Faubourg Marigny and Bywater, Williams said. Yet some increases will still occur based on the size and condition of properties. Williams also referenced growth in the neighborhoods on the lake side of St. Claude Avenue. Once considered an undesirable area, now gentrification is quickly taking place and driving up property values and taxes accordingly. Soon, Williams said, the value of properties on the lake side of St. Claude will catch up with the value of those on the river side. 

Williams’ research further illustrates that property values on the lake side of Claiborne Avenue are “still pretty flat.” Beyond Poland Avenue, the prices for land on the lake side of St. Claude is also flat. But in Holy Cross, on the river side of St. Claude in the Lower 9th Ward, property values are rising as the area has become more desirable. 

Williams is quick to point out that his work is done based on street views, and sales of properties in each area. “There are many variables unknown to us.” If a home has a well-manicured lawn, a new front door, attractive windows and fresh paint, there is no way to know if the home is gutted on the inside. “That’s why we open the books so that to the public can comment,” he said. Property owners will receive notice of the change in assessment via mail.  

Though increases in mortgage and insurance rates have cooled the sales volume in New Orleans and around the country, home prices continue to rise. “On average, prices are up, and people are willing to pay more,” Williams exclaimed.  

The quadrennial 2024 assessment rolls will open for public inspection beginning Monday, July 17, and ending Tuesday, Aug. 15. Hours of operation for in-office inspection are from 8:30 am. to 4 p.m. Monday through Friday. The information will also be available at the Assessor’s Office or online at nolaassessor.com. Citizens interested in meeting personally with Williams’ staff to discuss their property’s assessment are encouraged to schedule an online or in-person meeting using the online scheduling system at nolaassessor.com or by calling 504-754-8811.  The scheduling portal will go live on Saturday (July 15). 

Walk-ins will be seen on a first-come, first-served basis. Individuals with scheduled appointments will be given priority. If a property owner is unable to schedule an appointment, it is recommended they submit an appeal online because wait times could be long. The online appeal system will be available from 8 a.m. on July 24 until  Aug. 18 at 4 p.m.

Danae Columbus, opinion columnist

Danae Columbus, who has had a 30-year career in politics and public relations, offers her opinions on Thursdays. Her career includes stints at City Hall, the Dock Board and the Orleans Parish School Board and former clients such as former District Attorney Leon Cannizzaro, former City Councilman Jared Brossett, City Councilwoman at-large Helena Moreno, Foster Campbell, former Lt. Gov. Jay Dardenne, former Sheriff Charles Foti and former City Councilwomen Stacy Head and Cynthia Hedge-Morrell. She is a member of the Democratic Parish Executive Committee. Columbus can be reached at swampednola@gmail.com.