Article written by Larry Dietz, CCIM, Associate Broker at Saurage Rotenberg Commercial Real Estate
Quite often, when national polls are taken on certain issues (ie: education, politics, corruption etc.) Louisiana is at the bottom of the list. However there is one issue where we are one of the few states that remain on top.
That issue is a Real Estate Transfer Tax.
Louisiana is one of only thirteen states remaining that do not have such a tax.
Additionally and more importantly, we have the opportunity to join only three other states, (Arizona, Montana and Missouri) which have constitutional amendments prohibiting such a real estate tax from being imposed. Sen. Eric LaFleur (D) of Ville Platte is proposing a constitutional amendment to do just that in Louisiana. His proposed legislation currently under consideration in the present session of the legislature would prohibit (via constitutional amendment) any new real estate transfer tax. If the amendment is approved by the Legislature, voters would also have to approve it. The changes would be on the Nov. 17 ballot. Currently there is no law in the Louisiana Constitution prohibiting a state or local real estate transfer tax.
Louisiana’s fiscal constraints and pending deficits are creating extremely difficult situations on the local and parish levels. When that occurs, increasing revenue tends to be the answer for many people. In fiscal year 2010, we had a projected budget deficit of approximately $319 million dollars. For fiscal year 2011, there is a projected deficit of approximately $1.6 billion dollars, a budget deficit that is currently under debate in the legislature. Some are predicting for fiscal year 2012, a budget deficit in the amount of almost $2 billion dollars! Louisiana is facing some serious issues as it looks ahead to continuing tax revenue decreases and increasing demands for spending.
For some, increased taxes are part of the answer. Sen. Eric LaFleur hopes to forestall this particular tax increase with his proposed constitutional amendment. The Louisiana Realtors Association is supporting this effort to eliminate the potential for a real estate transfer tax.
Please take a look at the attached link for more information.
Thirteen states. Reminds me of the original thirteen colonies which declared their independence from England in 1776 in the American Revolution. Taxes was one of the key issues then…
Larry Dietz, CCIM Saurage Rotenberg Commercial Real Estate
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Larry Dietz, a real estate broker with Saurage Rotenberg Commercial Real Estate, has over 30 years of Sales, Marketing and Public Relations experience. He is a Designee member of the Certified Commercial Investment Member Institute (CCIM), as well as an affiliate member of the National Association of REALTORS® (NAR), and the Commercial Investment Division of the Greater Baton Rouge Board of REALTORS® (CID). He is a licensed real estate broker in Louisiana and Mississippi.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).
