Avoyelles Parish local governments consider adjusting millage rate

Taxing authorities across Avoyelles Parish are adopting adjusted millages based on the recent reassessment of property values. This state-mandated process happens every four years.

This year is a reassessment year and doing things according to the "roll forward" rules can mean thousands of dollars more in tax revenue each year. Then again, for some small municipalities the cost of the required legal advertisement to adjust the millage rate is almost as much as the town would receive in extra revenue from the adjustment, Avoyelles Assessor Heath Pastor said.

Reassessment, also called reappraisal, is mandated by the state Constitution to revalue all property subject to taxation. The millage rates are adjusted up or down, depending on the property value in the taxing jurisdiction.This is done to ensure the taxing authority keeps the same amount of property taxes it collected the previous year.

Adjusted millage rates fixed by reassessment remain in effect unless changed by law. Pastor said municipalities, Police Jury, School Board and other parish taxing authorities adopt their millages every year. On reassessment years, that otherwise routine action takes on a more important role.

"Let's say a taxing authority has a 10-mill tax," Pastor said. "Under reassessment, the property values have increased so that it now only takes 9.8 mills to collect the same amount as they did with 10 mills the year before. They have the opportunity to adjust the millage rate back to the 10 mills that was approved by voters."

If reassessment found property values had decreased in a taxing authority's jurisdiction so that it would take 10.2 mills to generate the same revenue as 10 mills had, the tax rate would reset to 10.2mills. However, the taxing authority could choose to retain the lower millage rate.

Parishwide the taxable value of property -- the value after homestead exemption is taken into consideration -- increased from $150,060,641 in 2019 to $153,020,826 in 2020. This is the amount a parishwide property tax would be based on.

That almost $3 million increase would mean about $3,000 per mill in parishwide property taxes. The total assessed value of property increased from $211,696,640 to $215,170,290. This amount includes property covered under homestead exemption.

Pastor said a taxing body does not have to "roll for-ward" its millage rate this year. It has two more chances to adjust the rate.

"If they don't adjust the rate before the year prior to the next reassessment, they lose the ability to reset the millage rate," Pastor said.

Many taxing authorities in the parish have already advertised an intent to "roll forward" to last year's millage rate. Others have not.

In the above example that would mean the 10-mill tax approved by voters that was reduced to 9.8 mills would become a 9.8-mill tax until it expires or is readjusted in the next reassessment. If the 2024 reassessment finds that 9.5 mills would bring in the same amount as the 9.8 mills, the taxing authority could adjust to 9.8 mills, but not to the original 10 mills.

"Of course, if the tax expires the taxing authority can seek voter approval at whatever millage rate it chooses," Pastor added.

Property taxes supporting bond issues are not affected by the reassessment because the language of the propositions sets a maximum amount of revenue to be collected each year and does not set a specific millage for the tax. The millage on those taxes adjusts automatically each year to collect the amount needed to satisfy the bond issue requirements, Pastor noted.