Ascension Parish Assessor M.J. "Mert" Smiley Jr. has been saying for months that local leaders should take a pass on an often little-noted technical adjustment to property rates that can allow governments to collect a modest revenue windfall.
The tax adjustment happens in local governments across Louisiana once every four years — as in 2024 — when parish assessors are required to reassess property values to better match them to current market rates.
But the response to his request has been mixed in Ascension. In addition to Smiley's office, parish government is the only other local property tax-collecting entity that has heeded his call.
The sheriff, School Board and city of Gonzales have already taken the steps to capture the extra revenue. The city of Donaldsonville and town of Sorrento are expected to consider their rates this week.
Smiley said his office is expecting a big reassessment this year and has argued that not making the technical move would mitigate the impact of higher assessed values on property tax bills.
"And that's why I was hoping that all entities of government would do it this time," he said.
But other officials say their agencies need the extra money to keep up with inflation and to match demand for services in the fast-growing parish.
Back, then forward
At issue is what's known as "rolling forward."
When assessors reevaluate property values in a reassessment year, local jurisdictions must, by law, reset their property tax rates, which are known as millages, so the rates produce the same revenue as in the prior year.
When property values are rising, jurisdictions need a slightly smaller tax rate to produce the same level of revenue as the prior year.
Reducing property tax rates to these lower levels is known as "rolling back" millages. But, under state law, after local governments make the required roll back, they can then opt to "roll forward" rates back up to the voter-approved maximum rate.
This step preserves that maximum tax rate until the next election, but also provides additional revenue due to rising property values.
A tax increase or not?
Over the years, the Legislature has adopted many measures to inform the public about the process and require entities to hold government meetings on it and to issue notices that portray it as a tax increase.
In a series of split votes, the Ascension Parish Council failed on Thursday to garner the necessary two-thirds majorities to roll forward any of 21 millage rates, despite the wishes of the Prairieville fire and parish library boards.
Though passing on nearly $1.3 million divvied up among various dedicated uses, the council garnered majorities not to roll forward. Before the votes, the council also learned from auditors that revenues have been up strongly in recent years due in part to sales tax collections on the inflationary costs of goods and internet sales.
A handful of residents also argued that rolling forward amounted to a tax increase without voter backing and that any increases would come at a time of high inflation and other costs.
"We started this meeting talking about inflation and how it's hurting people, and now we're talking about raising taxes without letting people vote on it. I think that's messed up," said Tyler Berthelot, of the Gonzales area.
The council made mostly the same decision in 2020, deciding not to roll forward any millage rate except for those for the Council on Aging and the Prairieville Fire Department, officials said.
Council Chairman Chase Melancon was among the council members who voted unsuccessfully to roll forward some rates. He had specific reasons for each.
Melancon, for instance, argued that the savings from maintaining a higher fire insurance rating in Prairieville outweighed the minimal cost of slightly higher fire millages on most homeowners. Juvenile justice dollars are helping with care and education of young children in poverty in Donaldsonville, he added.
"I think that's going to do wonders for this community," he said.
On July 18, the council will also consider setting millage rates for special neighborhood road taxing districts.
Worried what the rate cuts will mean for drainage work in his Donaldsonville-area district, Councilman Oliver Joseph was the only member to vote for every millage to roll forward, saying those rates already went to the ballot.
"The voters have spoken," he said.
Sheriff Bobby Webre takes a similar view as Joseph. The sheriff also objects to the language in the required notices, saying it makes it sound like he is raising tax rates when he says he is not.
Webre said that when he rolled forward this year, all he did was maintain the 14.48 mills residents voted for and have paid to parish law enforcement for more than 40 years.
"That rate has never changed," he said.
The additional revenue that his office is gaining is from rising property values, he said.
The millage, which generates around $20 million annually, will help him afford rising insurance and fuel costs and keep up with wages, he said.
Costly schools
On Tuesday, the School Board rolled forward six millage rates for 2024 that comprise about 43% or more of the typical Ascension taxpayer's bill. The system will net an additional estimated $1.14 million in 2024, according to a board worksheet.
Under state law, an additional 15.08 mills to pay off school construction bonds aren't affected by rolling back and so don't need to be rolled forward either. Those taxes are pledged to preexisting debt.
Unlike the Parish Council, no one from the public was present to air their views on rolling forward, but on the same day, the board learned it would have to make adjustments to its employee and retiree health insurance plans to cover extra costs next year.
In addition to other adjustments, premiums have been recommended to go up $10 per month for employees and $5 per month for retirees.
If adopted, the increase would be the first in seven to eight years, school officials said. The remaining overage must come from board coffers, expected at around $2.1 million.
The board is also proposing its first permanent employee raise in a few years, pushing starting teacher salaries over $50,000 for the first time. Last year, a salary survey suggested the system was in the middle of the pack among its local peer districts.
Final votes are pending on both changes.
Late last year, the school system also counted on rising property tax revenues to help pay for the installation and long-term maintenance of air-conditioning units in its buses after an outcry about heat during the first months of school.
"The board decided that as the population continues to grow, the need for our services grows and we serve more students," said Taft Kleinpeter, School Board president. "By maintaining the rates originally approved by voters that are generating more revenue, we can maintain our quality of services."