The Louisiana House Ways and Means Committee has approved House Bill 271, a proposed constitutional amendment that would allow parishes to increase the state's homestead exemption for the first time since 1980. The measure, sponsored by Rep. Matthew Willard (D-New Orleans), passed with a 9–5 vote and now moves to the House Civil Law and Procedure Committee for further consideration.
HB 271 seeks to raise the homestead exemption from $7,500 to $12,500 of assessed property value, effectively increasing the exemption from $75,000 to $125,000 in market value. The bill was amended to grant local parish governments the discretion to adopt the higher exemption or maintain the current level.
"This bill is about protecting people, especially in cities like New Orleans, who are being squeezed by rising property taxes and surging insurance costs," said Rep. Willard. He asserted that the homestead exemption has not kept pace with inflation and rising home values, noting that the average home price in Louisiana has increased significantly since the exemption was last adjusted.
Supporters argue that the measure would provide relief to homeowners facing escalating costs. New Orleans Assessor Erroll Williams and St. Tammany Assessor Louis Fitzmorris testified in favor of the bill, highlighting that the exemption's value has eroded over time and that local governments should have the flexibility to address their constituents' needs.
However, some lawmakers expressed concern about the potential fiscal impact on local services funded by property taxes. Rep. Michael Echols (R-Monroe) warned that increasing the exemption could lead to significant revenue shortfalls for schools and other essential services. "Somewhere between $536 million to almost a billion dollars of impact. If the state adopted this policy, do you know what that would do to our educational systems and other things that are funded by property taxes?" Echols stated.
The Louisiana Association of Business and Industry also opposes the bill, citing concerns over its potential economic consequences.
If HB 271 passes both legislative chambers with a two-thirds majority, it will be placed on the November 2026 ballot for voter approval. If approved, the new exemption would take effect on January 1, 2027.
The vote breakdown on the amended version of the bill that was approved by the committee was as follows:
Brass, Ken Yea
Bamburg, Jr., Dennis Nay
Billings, Beth Anne Yea
Bryant, Marcus Anthony Yea
Echols, Michael Charles Nay
Farnum, Les Yea
Gallé, Jr., Jack "Jay" William Yea
Henry, Chance Keith Yea
Johnson, C. Travis Yea
Landry, Mandie Yea
McMahen, Wayne Nay
Orgeron, Joseph A. Nay
Wilder, III, Roger William Nay
Willard, Matthew Yea
The News has requested comment from Representative Wilder’s office. Story will be updated pending receipt.
