CLOSING GUIDELINES FOR REAL ESTATE PROFESSIONALS

Transcription

1 CLOSING GUIDELINES FOR REAL ESTATE PROFESSIONALS www. stpao.org

2 Our mission is to serve the citizens of St. Tammany Parish with fairness, efficiency and responsiveness.

3 Assessor Louis Fitzmorris, CLA We have developed this guide to help professionals, such as closing attorneys, title companies and realtors, understand the property tax process and assist and educate home buyers when purchasing real property in St. Tammany Parish. Assessor Louis Fitzmorris. 1.

4 ST. TAMMANY PARISH ASSESSOR S OFFICE. 2.

5 2015 Closing Guide for Real Estate Professionals TABLE OF CONTENTS: Introduction... 4 Understanding Homestead Exemption... 4 Property that does not have an Existing Homestead Exemption... 5 Property that has an Existing Homestead Exemption and the seller buys another house at the time of the act of sale... 5 Special Circumstances: Absent Homeowner... 6 Multiple Improvements... 6 Lagniappe... 6 Divorces/Separations... 6 Trusts... 7 Surviving Spouses... 7 Nonprofits... 7 Bond for Deed... 8 Sell-offs for Bulk Listings... 8 Tax Sale Property... 9 Applying for Special Assessments... 9 Disabled Veteran s Double Homestead Obtaining Use Value Seeking Discounted Investor Rate Estimating Annual Taxes Fair Market Value Personal Property Valuation Reviewing and Appealing Assessments Reporting Structural or Weather-Related Damages Legality Challenges Versus Correctness Challenges Under Louisiana Law Disseminating Tax Notices Understanding Tax Sales St. Tammany Parish 2014 Parcel Fees St. Tammany Parish 2014 Millage Rates Determining Total Millages for a Particular Area Addendum Attorney General Opinions on Homestead Exemptions Usufruct and Surviving Spouse Worksheet Trust Worksheet Tax Sales Important Dates to Remember

6 ST. TAMMANY PARISH ASSESSOR S OFFICE Introduction The Constitution of the State of Louisiana authorizes local and state governments to tax real and business personal property. The broad constitutional principles are clarified in the revised statutes. Louisiana Tax Commission rules and regulations, passed in accordance with the constitution and statutes, further clarify and make these statutes workable. This summary of constitution provisions and revised statutes is for convenience only and is not intended as an official interpretation. Actual provisions of law supersede this summary of procedures and guidelines. Understanding Homestead Exemption* New homeowners must own and occupy the residence by December 31 of the applicable tax year to qualify for Homestead Exemption. Louisiana state law allows an individual only one Homestead Exemption up to $75,000. This exemption is granted proportionately with the ownership interest of those domiciled in the residence. It is typically best to apply for Homestead Exemption for a new primary residence between January 1 and April 15 following the year of purchase and recordation to prevent any unnecessary increases in property taxes for the current year. Generally, it is not beneficial to file an early Homestead Exemption if: 1 An occupancy permit was issued after January 1, the new home was not complete by January 1, and/or vacant property is on the current tax rolls. 2 The seller already had a Homestead Exemption on the current tax rolls. 3 The seller had a Senior Freeze, Disability Freeze, Use Value and/ or Investor Rate. The value for the purchaser will not reflect these discounted rates. The new assessed value will be reflected for the new owner, and if they qualify for a freeze, the new value would be established and then frozen. 4 The seller s taxes were without a Homestead Exemption or higher for another reason, and taxes were prorated at the closing based on the higher value and prorated to buyer, especially late in the year. Please advise your clients to read the deed/title. Please advise them if and how taxes were prorated. If applying for early Homestead, it is advisable to bring a copy of the HUD statement. We attempt to avoid inequities of early homestead transfers that counteracts the tax allocation at closing. * To download a copy of our brochure Understanding How Your Property is Assessed, go to 4.

7 2015 Closing Guide for Real Estate Professionals New homeowners should bring to the Assessor s office, in Covington or Slidell, a copy of the recorded act of sale and their driver s license and/or voter s registration card that reflects their new address. The Homestead Exemption application is available on the Assessor s website, The Homestead application must be filed in person. Homeowners may go to the website, print out the Homestead Exemption form, complete it and bring to the office to review with our staff. Homestead Exemption does not affect municipal taxes or parcel fees. Property owners living inside city limits will owe city taxes based on the total assessed value without the benefit of Homestead Exemption. Homestead Exemption in St. Tammany Parish is permanent once you become eligible. However, failure to advise the Assessor within 60 days that a property is no longer eligible, is a misdemeanor, LA R.S. 47:2330. ProperTY THAT does not have an existing homestead exemption. Taxes are usually prorated to the purchaser based on the current tax roll at the time of sale. Usually, the purchaser should file for Homestead Exemption for the next year, because the tax proration at time of sale transferred money from the seller to buyer to cover seller s portion of taxes. Regardless of when a homeowner applies for Homestead Exemption, it is for the entire year. An early Homestead Exemption filing by the buyer would give the buyer an incorrect proration because the taxes were based on no Homestead Exemption at closing. If you own two homes and move from one to the other, you must file a new application and remove the old Homestead Exemption. ProperTY THAT has an existing homestead exemption and the seller buys another house. If taxes are prorated at an Act of Sale with the property having a Homestead Exemption in the seller s name, the purchaser benefits from the sellers homestead and any attached assessment freezes, because status and ownership is as of Jan. 1 of the year. Therefore, if the seller purchases a new home during the same year of his sale, which does not have Homestead Exemption, and he wants a Homestead Exemption on the newly acquired property, he (seller) should not remove the homestead on the property he sold because proration at the sale was based on the property having homestead and the law states that you are entitled to only one Homestead Exemption. Both properties can have a Homestead Exemption. This would require the seller and purchaser to come to the Assessor s office at the same time with their Act of Sales and both apply for their Homesteads. If they qualify by only having one homestead and. 5.

8 ST. TAMMANY PARISH ASSESSOR S OFFICE occupying their respective properties, and if both parties have agreed to transfer the property early and with some possible adjustments in the value, both parties could have a Homestead Exemption. Absent Homeowner If a homeowner is absent from the domicile but intends to return and does not rent the home or claim Homestead Exemption elsewhere, such as residing in an assisted living facility or active military deployment, the Homestead Exemption is retained. Remember, if Homestead Exemption is lost all other special exemptions are removed as well. MuLTiple Improvements If multiple improvements are on the same assessment number and one structure is rented and one has a Homestead Exemption, we list those rented improvements on a separate listing. Similarly, an owneroccupied double with half the improvement value and all land on the Homestead Exempted assessment and the rented improvement is listed on another assessment. This results in two separate tax bills, so both bills must be paid to avoid a tax sale. Lagniappe We generally work transfers a year in arrears. We should be advised early of unique circumstances after recordation, such as sales to/from nonprofits, in order to appear on the current tax roll. We only recognize documents recorded in the parish conveyance records. Filing resub maps is not a conveyance and should be followed up with the Assessor s Office to ensure assessments are correct. Avoid creative captions on recorded documents as they sometimes are not communicated to our office and not reflected on the tax rolls correctly. Divorces/SeparATions To avoid double Homestead Exemptions, parties must have a divorce and community property regime/settlement before one spouse can get another Homestead Exemption, because both parties would still have one-half ownership on the existing property. As an option, a husband or wife can donate his or her one-half interest in the existing house so that it becomes separate property of only one party. For marital donations, please refile for Homestead Exemption in the proper names so that documentation on file matches current ownership. Separate or co-owned property may require both signatures.. 6.

9 2015 Closing Guide for Real Estate Professionals Trusts Homestead Exemption shall extend to property owned by a trust when the: Principal beneficiary of the trust is a settlor(s) of the trust. Principal beneficiary/settlor is the immediate prior owner. Principal beneficiary/settlor occupies the homestead. Property qualified for Homestead Exemption immediately before transfer, conveyance or donation or would have qualified if not owned by a trust. Principal beneficiary/settler must retain full usufruct to retain the Senior Freeze. Trusts do not otherwise qualify for a Senior Freeze. For trusts filing for Homestead Exemption, a copy of the trust document or abstract thereof must be filed with the Homestead Exemption or disability form. Surviving Spouses Homestead Exemption shall extend to a surviving or former spouse when the: Trust was established for the benefit of a surviving/former spouse. Title to the Homestead is in the name of a surviving/former spouse as owner. Surviving/former spouse occupies the Homestead. Surviving/former spouse has only one Homestead Exemption if granted this one. Nonprofits To qualify for property tax exemption, a nonprofit must own the property and meet four basic requirements: 1 The organization must be a nonprofit corporation or association organized exclusively for religious, designated places of burial, charitable, health, welfare, fraternal or educational purposes. 2 None of the net earnings of the organization benefits any stockholder or member. 3 The nonprofit must be exempt from federal and state income taxes. 4 None of the nonprofit s property is owned, operated, leased or used for commercial purposes. Nonprofit organizations must apply to the Assessor s Office for property tax exemptions for any non-income producing properties. To obtain an exemption, a nonprofit organization must provide: State of Louisiana Nonprofit Exemption Application 7.

10 ST. TAMMANY PARISH ASSESSOR S OFFICE Determination Ruling Letter from the Internal Revenue Service (IRS), IRS T-900 Form Articles of Incorporation, and State of Louisiana Nonprofit Certification. The property must be wholly owned by the nonprofit, not a related entity. The Assessor s Office regularly inspects all nonprofit properties to determine continued eligibility. The authority to determine whether a particular taxpayer may be exempt from the payment of ad valorem taxes is a factual determination exclusively reserved to the assessor, the parish governing authority, the Louisiana Tax Commission and the courts by Article VII, Section 18 (E) of the Constitution. Bond for Deed Homestead Exemption is unavailable to buyers who have a bond for deed contract with a seller. However, Homestead Exemptions granted prior to June 20, 2003 are grandfathered. LA Const. Article 7 Sect. 20(7), LA R.S. 9:2948. Sell-offs from bulk listings In sales from bulk listing or sell-offs from parcels occurring after Jan. 1, buyers pay sellers their proportionate share of taxes for property purchased, as the Assessor s Office is unable to break out tax bills retroactively. Both seller and buyer should refile Use Value applications for the following year, if applicable. Multiple sell-offs from bulk assessments can create confusion and often results in double assessments and/or tax sales. Private roads, common areas, and green space usually remain on the original assessment. If informed that it is only residual acreage, it is assessed accordingly. If. 8.

11 2015 Closing Guide for Real Estate Professionals transferred to a nonprofit homeowners association, it can become tax free upon application. The Assessor s Office is developing a GIS system and will be eliminating bulk assessment. Tax Sale ProperTY If a tax buyer has purchased property for non-payment of taxes on a broken-out parcel, the former owner must first fully redeem the property at the Sheriff s Office before a Homestead Exemption or an assessment review filing is allowed. If three years have passed since the tax sale, the tax sale buyer must be dealt with first. Any quitclaim deed should direct the Sheriff to pay taxpayer any refunds, if that is the intent of the parties. Applying for Special Assessments A buyer may qualify for a special assessment if the buyer: Is 65 years of age or older and has a combined adjusted gross household income below $70, for 2014 (adjusted annually based on the Consumer Price Index), Has a service-connected disability rating of 50 percent or more, Is a surviving spouse of someone killed in action, missing in action or a prisoner of war for a period exceeding 90 days, Is adjudged permanently and totally disabled by an administrative ruling. SPECIAL ASSESSMENT Example: Consumer Price Index, March Less Consumer Price Index, March Increase.0150 Percentage Increase from March 2013 (3.520/ ) $70, Special Assessment Level $71, Special Assessment Level ($ x = $ ) Buyers may qualify for a Senior or Veteran Freeze to lock in the current assessed value of their home for as long as the buyer owns and occupies the home, if homebuyers combined adjusted gross income does not exceed more than the maximum allowed, and if any improvements/upgrades to the property do not exceed 25 percent of the home s value. The Freeze extends to surviving spouses who are at least 55 years of age and meet all other criteria. This does not freeze the taxes that vary with the millages approved by the voters and taxing bodies.. 9.

12 ST. TAMMANY PARISH ASSESSOR S OFFICE Special assessment applications are available on the Assessor s website at Apply in person for special exemptions by bringing to the Assessor s office, in Covington or Slidell: current income tax return to verify income Veterans Affairs and/or Social Security Administration decision letter (for veterans and disabled) DISABLED VETERAN S DOUBLE HOMESTEAD For a Homestead Exempted property owned and occupied by a veteran with a service-connected disability rating of 100 percent, by the U.S. Department of Veterans Affairs, the next $7,500 of the assessed valuation shall also be exempt from ad valorem taxation, for a total of a $15,000 exemption (or $150,000 market value). To apply, please bring the disability rating, judgment, or death certificate to Assessor s Office. Obtaining Use Value According to state statutes, bona fide agricultural, horticultural, marsh and timberlands are assessed at Use Value rather than market value. In the case of agricultural, horticultural and timber lands, the property must be at least three acres or have produced an average gross annual income of $2000 or more the four preceding years. The productivity of the land determines the Use Value. Use Values range from $3.00 per acre for saltwater marshland to $38.67 per acre for high production timberland. Agricultural and horticultural land Use Values range from $18.60 to $34.79 per acre. The Louisiana Tax Commission resets Use Values every four years. Those subdividing a parcel or acreage must refile the land use form on the remaining acreage. The Assessor s Office removes the Use Value and generally sends a new use form. In most instances, a second reminder is sent during the review period. If the application is filed after the tax roll is certified in November, the Use Value will be removed and is unable to be reinstated until the next tax year. In the future, you may be required to obtain an address through Seeking Discounted Investor Rate Before initial occupancy, a developer, builder or contractor, operating as a legal entity, may receive a discounted Investor Rate Assessed Value for improved or unimproved, never occupied residential immovable property intended for resale. To obtain the Investor Rate, complete and bring to the Assessor s Office the Investor Rate exemption form, 10.

13 2015 Closing Guide for Real Estate Professionals property is assessed as follows: Land 10% Commercial Land 10% Improvements for Residential (incl. apartments) 10% Improvements for Commercial 15% Business Movable Property (personal) 15% Public Service Properties (excl. land) (assessed by the Louisiana Tax Commission) 25% Estimating Annual Taxes The Louisiana Constitution requires the Assessor to identify, list and value all property subject to ad valorem taxation on an assessment roll each year. The ad valorem basis for taxation means that all property should be taxed according to value rather than the sales price. The Constitution defines assessed value as a percentage of fair market value or Use Value. Fair Market Value Fair Market Value is determined by considering relevant real estate transactions in the market place between willing sellers and willing buyers. The Assessor is legally obligated to evaluate and study these transactions and assess your property accordingly. Current construction costs, zoning, financing and economic changes also influence market values. The Assessor uses the three nationally recognized appraisal approaches to determine market value. These appraisal calculations are. 11.

14 ST. TAMMANY PARISH ASSESSOR S OFFICE Residential Example: $175, Fair Market Value Land and Improvements x 0.10 Assessment Level for Residential Property $17, Assessed Value minus ($7,500.00) Maximum Homestead Exemption $10, Taxable Value times x ( Parish Tax Rate mills plus ) City Tax Rate ($350), if any $1, TOTAL TAXES due Commercial Example: $200, Fair Market Value Commercial Improvements times x 0.15 Assessment Level for Commercial Improvements $30, Assessed Value Improvements $100, Fair Market Value Commercial Land times x 0.10 Assessment Level for Commercial Land $10, Assessed Value Land $40, Assessed Value Improvements and Land times x ( Parish Tax Rate ($5688) plus ) City Tax Rate ($800), if any $6, TOTAL TAXES DUE commonly referred to as the cost, income and market approaches. After a mass appraisal of your subdivision or area, a property s assessed value is determined by applying the appropriate percentage of value or assessment level that the law requires. The property s physical characteristics, such as square footage, quality and age of improvements (buildings and other structures), depreciation and class, etc., are also taken into account. To estimate annual taxes in a closing, use the sale price if it reflects market value and is an arms length transaction. The appraisal department will determine the assessed value the following year. Do not use taxes of similar home s assessments on that street that have special assessments. Please call us if you have any questions. For example, if the sales price is $175,000, 10 percent of fair market value is $17,500, which is the assessed value. If the property has Homestead Exemption, subtract $7,500 for a taxable value of $10,000. If your parish tax rate is mills (A mill is 1/1,000 of one cent.), multiply the taxable value. 12.

15 2015 Closing Guide for Real Estate Professionals by to arrive at the total parish taxes due. Homestead Exemption does not apply to municipal taxes, so multiply the total assessed value by.020 (if your municipal millage is 20) to determine municipal taxes. Millage rates vary, from 128 to 179 mills, across the parish by tax districts and municipal boundaries. A tax calculator is available online for your convenience at www. stpao.org/assessment-tools. Short sales, foreclosures, donations, successions, etc., are not arm s length transactions, so the assessed value may be more than the sales price. Simply assessing properties at sales prices or percentage thereof creates an inequity among identical property. Call the Assessor s Office for computer assisted mass appraisal values in the area. Transfers and permits are documented a year in arrears. Only non-valuation disputes are reviewed after tax bills are sent out. Please indicate any movables included as part of sales price or explain if taxes are not allocated or prorated in sales documents. The Assessor s Office takes into consideration the condition of the home on Jan. 1 of the year of the act of sale and reviews all properties for assessed value the year after the sale when all transactions prior to Jan. 1 are processed. The assessed value is based on Jan. 1 of the year of the tax re-assessment year, presently Jan. 1, For the 2012 reassessment, we used values six months before Jan. 1, 2011, and six months after Jan. 1, This establishes blue book value for similar properties for the next four years. Owners must re-file all exemptions (Homestead, Use Value, Senior Freeze, etc.) on property for the year following the sale. All of the seller s previous filings are removed and property is revalued before a new status (freeze) is processed. If an early homestead is advantageous and filed, the assessed value may change the following year when revalued and then refrozen, if applicable. When reviewing late sales, after June 31, unjust enrichment is considered. For example, when there is a big reallocation of taxes to buyers and then a request for a reduction of taxes already paid to buyer by seller at closing. Personal ProperTY ValuATion Ad valorem taxes are collected only on business personal property. In Louisiana, personal property, also known as movable property, means tangible property that is capable of being moved or removed from real property without substantial damage to the property itself or the real property from which it is being removed. Personal property includes, but is not limited to, inventory, furniture, fixtures, machinery and equipment, and all things other than real estate that have any pecuniary value, all. 13.

16 ST. TAMMANY PARISH ASSESSOR S OFFICE monies, credits, investments in bonds, stocks, franchises, shares in joint stock companies, etc. Primarily, personal property in Louisiana is valued using the cost approach. Using this method, the original cost of an asset is multiplied by a cost index to arrive at a replacement cost new and then depreciation and obsolescence are subtracted to arrive at the fair market value. The cost index is similar to a consumer price index and is a composite of equipment costs of various industries. The Louisiana Tax Commission, using a Percent Good table, determines a depreciated value. (Original Cost x Cost Index) x Depreciation Factor x Obsolescence Factor (if any) = Market Value To simplify calculations, the Commission provides a Composite Multiplier table, which contains values that are the product of the percent good values multiplied by the cost indices. Original Cost x (Cost Index x Depreciation Factor) x Obsolescence Factor (if any) = Market Value [referred to as Composite Multiplier ] Several types of personal property are not valued using the Composite Multiplier table but rather by separate tables developed for each type of property. The property types include watercraft, aircraft, oil and gas properties, drilling rigs and pipelines. These tables can be found on the Louisiana Tax Commission website at RulesRegulations/Rules%20and%20Regs%20Changes/RULES.GB.pdf. The assessed value of business inventory is simply the average monthly inventory multiplied by 15 percent. Property taxes are paid on this. 14.

17 2015 Closing Guide for Real Estate Professionals inventory in the parish where the inventory is located. A tax credit is allowed against any Louisiana income or corporation franchise tax for ad valorem taxes paid to political subdivision on any inventory held by manufacturers, distributors, and retailers and on natural gas held, used or consumed in providing natural gas storage services or operating natural gas storage facilities. Credit for taxes paid by unincorporated persons shall be applied to state personal income taxes. Reviewing and Appealing Assessments The appropriate time to inspect assessments, verify mailing addresses, file a review or appeal assessments is a two-week period between August 15 to September 15. Each year s preliminary tax roll is available online on or about Aug. 1 each year. The roll reflects the past year s millages until all are reset by the individual taxing bodies by early November. Letters are sent each year to anyone whose assessed value increased by 15 percent or more that tax year prior to the open roll period (LA R.S. 47:1987B (1)(a)). After that time, valuation issues will only be reviewed for the next year s tax roll. Filing before or during this period preserves additional appeal rights. After the rolls are certified in November, the Assessor is unable to make changes without the Tax Commission s approval. To request a review of an assessment, please contact the Assessor s Office and, if possible, provide: Completed Assessment Review Form ( A recent appraisal addressed to a financial institution (We discourage requesting an appraisal solely for this purpose.) A declaration sheet from the insurance policy, or Any information or estimates documenting adverse conditions that may directly affect the value of the property If, after discussing the matter with the Assessor and a difference of opinion still exists, property owners may appeal their assessment to the St. Tammany Board of Review (Parish Council) by the deadline, usually 15 days after rolls close for inspection. If the Board, after hearing your petition, agrees with the Assessor, property owners may appeal this decision to the Louisiana State Tax Commission. If the Commission agrees with the Board and the Assessor, property owners can then appeal their case to the district court (LA R.S. 47:1992(B)).. 15.

18 ST. TAMMANY PARISH ASSESSOR S OFFICE Reporting structural or weather-related damages to a home or business Please complete an assessment review form as soon as possible to fully explain the extent of damages sustained by your home or business as a result of a severe weather event. Additional instructions, forms and information are available on our website at Upon receipt, we will review the current assessed value, inspect the site damage, damages in the area and determine if your assessed value should be reduced for the current tax year. Legality Challenges Versus Correctness Challenges First, Louisiana law distinguishes between valuation and nonvaluation issues. The Louisiana Constitution recognizes correctness challenges and legality challenges. 1 A challenge to the valuation of a property is a correctness challenge and is subject to administrative review first by the parish governing authority (Board of Review) and then by the Tax Commission. A challenge that property is exempt from taxation is a legality challenge and is not subject to administrative review. 2 Under LA R.S. 47:2134(B)(2)(b), if a correctness challenge is not already pending at the time the taxpayer makes payment of the tax under protest, then a suit seeking recovery of the protested suit need not be filed until 30 days from the date a final decision is rendered by the Tax Commission. As to legality challenges, LA R.S. 47:2134(C)(1) simply requires the payment be made under protest and that suit be filed in the district courts within 30 days of that date Disseminating Tax Notices The St. Tammany Parish Sheriff s Office mails out tax notices and collects taxes. New property owners should obtain a tax bill from the Sheriff or seller after December 1 of that year and arrange for payment. For purchases in the first half of the year, we attempt to send bills in Care Of the purchaser. Consequently, for purchases made after mid-year, the previous owner will receive the tax bill and should forward the tax notice to the buyer. New property owners may receive a letter from the Sheriff addressed to the prior owner or new owner for the recently purchased property. Always remember that taxes are settled (not paid) at the closing 1 Louisiana Constitution, Articles 7:18(E) and 7:3(A), respectively. 2 See Bass Partnership and Triangle Marine, 681 So.2dat

19 2015 Closing Guide for Real Estate Professionals of the sale. All payments should be sent to the St. Tammany Parish Sheriff s Office by December 31 of the same year to avoid penalties and interest. Should you need a duplicate bill, contact the St. Tammany Parish Sheriff s Office at St. Tammany, unlike Orleans, pays property taxes in arrears. Buyers and sellers addresses listed in sales documents should be valid until December when the Sheriff distributes tax bills. Change of Address forms must be filed with the Assessor s Office, not the Tax Collector, to ensure proper listing on the tax roll. A change of address form can be found at Beginning with the 2014 tax roll, all municipalities and parcel fees are now collected by the Sheriff/Tax Collector was the first year for Madisonville, while 2013 was the first year for Abita Springs and Pearl River. Prior to 2013, each city or town collected their own property taxes, so check with each city or town regarding any preexisting tax sales or unpaid ad valorem taxes for prior years. Additionally, check with the Sheriff/Tax Collector to ensure all business personal property taxes were paid when handling the sale of businesses or buildings including business personal property, such as inventory, furniture, fixtures, equipment, leasehold improvements, etc. Understanding Tax Sales If taxes are not paid by a certain date, the Sheriff s Office will advertise properties for sale to the public to collect the unpaid taxes. On an advertised date, usually in July, the property will be sold at a tax sale. If a property is not purchased at the tax sale, the property will then be adjudicated to St. Tammany Parish in compliance with the laws of the State of Louisiana. It is important to remember that any property that has been sold for nonpayment of taxes can be redeemed within a limited time period. It is equally. 17.

20 ST. TAMMANY PARISH ASSESSOR S OFFICE important to be advised that after a certain time period, a property owner can actually lose his property and thus his entire investment for failure to redeem his property from a tax sale and must deal directly with tax sale buyer. Contact the Sheriff/Tax Collector to obtain a payoff amount. The St. Tammany Parish Sheriff s Office handles all redemptions on tax sales and adjudicated property. It is the responsibility of the property owner to pay all taxes, penalties, interest and costs to the Sheriff s Office. As a property owner, please be aware that there are large in and out-ofstate companies that capitalize on the Louisiana tax sale process. Each year, these companies come to Louisiana and pay millions of dollars to acquire property at the Sheriff s annual tax sale. Under Louisiana law, a tax deed buyer can earn as much as 17 percent interest on their investment for the first year. Contact the Sheriff s Office with any questions regarding tax sales or redemption procedures. St. Tammany Parish 2014 Parcel Fees Drainage District 5 Phase 1 Acr Drainage District II Phase II Ac Drainage District Lighting District Lighting District Lighting District Road Lighting District Sub-drainage District Fire District 1 Parcel Fee Lighting District Sub-drainage District 2 of Gravity Drainage District Sub-drainage District 3 of Gravity Drainage District

21 St. Tammany Parish 2014 Millage Rates Tax District Madisonville Rural fire Rural - Includes TCH & FLWS RF - Rural Fire, Folsom Area Covington Rural (excludes codes 49, 109 & 112) RC - Country Club and Riverwood LR - Levee Road District Rural Mandeville and Lewisburg (excludes codes 44 & 49) RN - Rural North - Sun Area Mandeville (excludes code 44) Abita Springs Rural RM - Rural Mosquito District Rural - Includes Hillcrest Sun Rural - Bush Rural - Lacombe PR - Pearl River S - Slidell S - Slidell NF - Rural Fire RO - Rural Outside Levee RL - Rural Levee Rural Lake Crossing - Cellular Towers ROLF (Outside Levee, Road, Fire) SR - Sub Road NF - Rural Fire RW - Rural Water District RW - Rural Water District Rural - Lee Road Area LD - Lighting District RL - Rural Lighting/Eden Isles WS - Water and Sewer District WS - Water and Sewer District PW (Parishwide and City) Note: Parish taxes are due Dec. 31, No Homestead Exemptions apply to city taxes. See Addendum for any additional parcel fees. Determining total millages for a particular area Example 1 Ward 4 rural is in taxing district 12. The parish millage rate is plus, in different areas, an additional 1.00 mill for Gravity Drainage District #5 and/or 2.15 mills for Lighting District #6. So, if a property is in both special districts, the total is mills ( ). Ward Parish City Closing Guide for Real Estate Professionals Example 2 The parish millage rate for Mandeville, in taxing district 14, is Add the city millage of If the property is in Lighting District 6, the a total is mills ( ).

22 ST. TAMMANY PARISH ASSESSOR S OFFICE ADDENDUM Attorney General Opinions on Homestead Exemptions Title 61 V, 1, I a Only one Homestead Exemption can be claimed. (A.G. s Opinion , p. 1660, A.G. s Opinion , p. 1678, A.G. s Opinion , p. 4117). B If other requirements are met, a person may be entitled to the exemption, even if the taxpayer is a citizen of another state or country (A.G. s Opinion , p. 729). C Taxpayer does not lose the exemption by temporary absence (A.G. s Opinion , p. 729). D State employees living in another parish does not lose his entitlement if he returns to occupy the property regularly (A. G. s Opinion , p.1055) and does not rent the property to another (A.G. s Opinion , p. 1054). E Army officer required to live away from home who allows relatives to occupy the property rent free does not lose his Homestead Exemption (A.G. s Opinion , p. 4088). F Taxpayer who establishes a second residency for political purposes does not lose the Homestead Exemption on his first residence (A.G. s Opinion , Oct. 17, 1986). G If part of a property is used as income producing property, the part occupied by the owner as a residence is exempt, the income producing part is not (portion of home used as a place of business is not exempt, A.G. s Opinion , p. 4129; A.G. s Opinion , p. 1144; rented half of double house not exempt, A.G. s Opinion , p. 1138). H When there is more than one tract with a residence on one and a field, pasture or garden on the other, tract must actually be used as a field, pasture or garden to be eligible for exemption, taxpayer must personally use the field, pasture or garden, and, if the tract is let out to another, it is not exempt (A.G. s Opinion , p. 1660). I Property owned by a partnership or corporation is not entitled to Homestead Exemption (Corporation: A.G. s Opinion May 7, 1969, A.G. s Opinion , p. 4119; Partnership: A.G. s Opinion , p.1044). J Purchase arrangement which does not transfer title does not give occupant entitlement to Homestead Exemption (Lease/purchase: A.G. s Opinion , p and p.4115; A.G. s Opinion , p. 1679; Bond for Deed: A.G. s Opinion No , May 12, 1987). K A bona fide homestead is not eligible for the homestead exemption if an LLC owns such homestead subject to a usufruct in favor of a natural person who owned the homestead immediately prior to the granting of such usufruct, qualified for the homestead exemption before the transfer, and continues to occupy the residence on the homestead. A.G s Opinion , 00-54, , , , and

23 2015 Closing Guide for Real Estate Professionals Usufruct and Surviving Spouse Worksheet General Rule CONST 7 Section 20.(A) Homeowners. (1) The bona fide homestead, consisting of a tract of land or two or more tracts of land even if the land is classified and assessed at use value pursuant to Article VII, Section 18(C) of this constitution, with a residence on one tract and a field with or without timber on it, pasture, or garden on the other tract or tracts, not exceeding one hundred sixty acres, buildings and appurtenances, whether rural or urban, owned and occupied by any person or persons owning the property in division, shall be exempt from state, parish, and special ad valorem taxes to the extent of seven thousand five hundred dollars of the assessed valuation. The same Homestead Exemption shall also fully apply to the primary residence, including a mobile home, which serves as a bona fide home and which is owned and occupied by any person or persons owning the property in division, regardless of whether the homeowner owns the land upon which the home or mobile home is sited; however, this Homestead Exemption shall not apply to the land upon which such primary residence is sited if the homeowner does not own the land. All Parties (2) The Homestead Exemption shall extend and apply fully to the surviving spouse or a former spouse when the homestead is occupied by the surviving spouse or a former spouse and title to it is in the name of (a) the surviving spouse as owner of any interest or either or both of the former spouses, (b) the surviving spouse as usufructuary, or (c) a testamentary trust established for the benefit of the surviving spouse and the descendants of the deceased spouse or surviving spouse, but not to more than one homestead owned by either the husband or wife, or both. Is the surviving spouse or former spouse occupying the home? AND 1. Is title in name of surviving spouse as owner of any interest? OR 2. Is title in name of either surviving spouse or of former spouse or both? OR 3. Is title in name of surviving spouse as Usufructuary (having use of property until death or termination)? OR 4. Is trust established at death for the benefit of the surviving spouse and the descendants of the deceased spouse or surviving spouse, but not to more than one homestead owned by either the husband or wife, or both? If YES to ALL, grant Homestead Exemption. If NO to the first question or all of the next four questions, Do NOT grant Homestead Exemption. (4) The Homestead Exemption shall extend to property where the usufruct of the property has been granted to no more than two usufructuaries who were the immediate prior owners of the homestead and the homestead is occupied as such by a usufructuary. The provisions of this Subparagraph shall apply only to property which qualified for the Homestead Exemption immediately prior to the granting of such usufruct, or which would have qualified for the Homestead Exemption if such usufruct had not been granted. Two or less Usufructuaries? Were immediate prior owner of homestead? Is home occupied as such by Usufructuary? Did home qualify for Homestead immediately prior? If YES to ALL, grant Homestead Exemption. If NO to any questions, Do NOT grant Homestead Exemption.. 21.

24 ST. TAMMANY PARISH ASSESSOR S OFFICE Trust Worksheet General Rule CONST 7 Section 20.(A) Homeowners. Section (5) The Homestead Exemption shall extend only to a natural person or persons and to a trust created by a natural person or persons, in which the beneficiaries of the trust are a natural person or persons provided that the provisions of this Paragraph are otherwise satisfied. GENERAL TRUST HOMESTEAD EXEMPTIONS (including surviving spouse) Section (3) The Homestead Exemption shall extend to property owned by a trust when the principal beneficiary or beneficiaries of the trust are the settlor or settlors of the trust and were the immediate prior owners of the homestead, and the homestead is occupied as such by a principal beneficiary. The provisions of this Subparagraph shall apply only to property which qualified for the Homestead Exemption immediately prior to transfer, conveyance, or donation in trust or which would have qualified for the Homestead Exemption if such property were not owned in trust. Who are the settlor or settlors (creator) of the trust? Who are the beneficiary or beneficiaries of the trust? Is one of the settlors and beneficiaries the same person? Does that principle beneficiary above occupy the home? Did property qualify for Homestead Exemption immediately prior to transfer, conveyance, or donation in trust? Would the property qualify for Homestead Exemption if not owned by trust? If YES to ALL, grant Homestead Exemption. If NO to any questions, Do NOT grant Homestead Exemption. Has Usufruct been retained? If so, Senior Freeze will be maintained. IF SURVIVING SPOUSE ONLY Section (2) The Homestead Exemption shall extend and apply fully to the surviving spouse or a former spouse when the homestead is occupied by the surviving spouse or a former spouse and title to it is in the name of (a) the surviving spouse as owner of any interest or either or both of the former spouses, (b) the surviving spouse as usufructuary, or (c) a testamentary trust established for the benefit of the surviving spouse and the descendants of the deceased spouse or surviving spouse, but not to more than one homestead owned by surviving spouse of former spouse or the husband or wife, or both. Was a trust established for the benefit of the surviving spouse and/or descendants of the deceased spouse or surviving spouse? Does testamentary trust have title to property? Is it occupied by the surviving spouse or former spouse? Does surviving spouse, husband or wife or both only have one Homestead Exemption if granted this one? If YES to ALL, grant Homestead Exemption. If NO to any questions, Do NOT grant Homestead Exemption.. 22.

25 2015 Closing Guide for Real Estate Professionals Tax Sales LA R.S. 47: Refund of taxes erroneously paid a Any person who has a claim against a political subdivision for ad valorem taxes erroneously paid into the funds of that political subdivision may present the claim to the Louisiana Tax Commission within three years of the date of the payment. Acts 2008, No. 819, 1, eff. Jan. 1, 2009; Acts 2013, No. 37, 1. TAX SALE DATE RECORDED DATE 2014 Tax Sale / / / /2015 Taxes Sheriff Sale 2014 Taxes 2013 Tax Sale 07/14/ /28/2014 Taxes Sheriff Sale 2013 Taxes 2012 Tax Sale 07/15/ /07/2013 Taxes Sheriff Sale 2012 Taxes 2011 Tax Sale 05/30/ /18/2012 Taxes Sheriff Sale 2011 Taxes TOO LATE, LA R.S. 47: Tax Sale 06/08/ /01/2011 Taxes Sheriff Sale 2010 Taxes 2009 Tax Sale 06/23/ /08/2010 Taxes Sheriff Sale 2009 Taxes 2008 Tax Sale 08/05/ /27/2009 Taxes Sheriff Sale 2008 Taxes 2007 Tax Sale 06/18/ /14/2008 Taxes Sheriff Sale 2007 Taxes If you identify a dual assessment or other errors, such as improvements not on the tax roll, please contact us. We fully investigate all complaints. However, any errors located after August generally cannot be corrected until the following tax year.. 23.

26 ST. TAMMANY PARISH ASSESSOR S OFFICE IMPORTANT DATES TO REMEMBER: (Dates may vary from year to year.) Jan 1 Valuation and legal status date Feb 1 Mail out business Personal Property Letters (LAT-5) Apr 1 Deadline to return LAT-5 forms for Personal Property Jul 1 Deadline for Investor Rate forms Jul Sheriff tax sale Jul 25-Aug 7 Public exposure ads for tax roll Aug 1 Deadline for taxing bodies to set millages ( Jun 1 legal deadline) Aug 14 Advise Tax Commission/Board of Review Aug 15-Sep 15 Tax review period (open rolls) two weeks between dates Aug-Sep Advertise Board of Review Sep Certify updated tax rolls Sep Council convenes as Board of Review Sep Council Board of Review begins Sep Deadline for appeal to Board of Review Sep Board of Review meeting dates Oct 1 Earliest date to deliver tax rolls to LA Tax Commission Nov 15 Deadline to deliver tax rolls to LA Tax Commission Dec 1 Sheriff/Tax collector mails tax bills Dec 31 Tax bills due These materials are provided as a general guide to the procedures of the Assessor s Office and the assistance that may be provided to taxpayers. It is not intended, in any manner, to serve as legal advice for any one particular case. Should any legal issues arise, it is recommended that an attorney be consulted. You are invited to contact the Assessor s Office for any further information at

27 Get the most current information, review past millage history, print & complete forms before you visit the Assessor s Office, view your own assessment, calculate taxes and communicate with the Assessor s Office on our website, Our mission is to serve the citizens of St. Tammany Parish with fairness, efficiency and responsiveness.

28 Louis Fitzmorris, CLA ASSESSOR, ST. TAMMANY PARISH COVINGTON OFFICE: ST. TAMMANY PARISH JUSTICE CENTER 701 N. Columbia Street / fax SLIDELL OFFICE, Towers building: 520 Old Spanish Trail / Suite 4B / fax OFFICE HOURS: Monday - Friday: 8:30 a.m. - 4:30 p.m. (Slidell Office) CLOSED 1:00 p.m. - 2:00 p.m.