Can a Louisiana disabled veteran claim a property tax exemption on a home owned with someone else, and can it apply after Orleans Parish closes its tax roll?

Plain-English summary

The Orleans Parish assessor asked how to apply the disabled veteran property tax exemption when a qualifying veteran owned only five percent of an occupied home. The assessor also asked whether the exemption could apply to the 2024 tax year when the application arrived on January 11, 2024, after the parish's roll had closed.

The attorney general said a co-owner who qualified for the homestead exemption could receive the additional veteran exemption in proportion to that person's ownership interest. After applying the homestead exemption, the remaining taxable value was allocated among the owners. The veteran's additional exemption applied to the veteran's share; for a veteran with a 100 percent service-connected disability rating, the opinion treated that share's remaining taxable value as fully exempt.

The office also said the exemption could apply to the 2024 tax year despite the closed roll. It treated the veteran exemption as tied to the homestead exemption, whose ownership and occupancy rule the opinion applied instead of Orleans Parish's August 1 rule for other exemptions. In the specific facts presented, it said the applicant owned and occupied the property by December 31, 2023.

What this means for you

Disabled veteran co-owners

The opinion allowed a qualified veteran to claim an additional exemption on the veteran's proportional share of a jointly owned homestead. Its example involved a five-percent owner with a 100-percent service-connected disability rating; the office said that owner's share of the remaining taxable value could be fully exempt.

Parish assessors

The opinion applied the homestead exemption first, then divided the remaining taxable value by each owner's ownership percentage and applied the veteran's additional exemption to the qualifying owner's share. For the 2024 Orleans Parish application described, the office said the closed roll and the prior August 1 cutoff did not control this homestead-related exemption.

Other property co-owners

The veteran's exemption in the opinion reduced or eliminated the veteran's proportional tax liability. The opinion's example kept the other co-owner's 95-percent share separately taxable.

Common questions

Q: Can a veteran who owns only part of a home get the Louisiana disabled veteran property tax exemption?
A: The attorney general said yes, if the veteran qualifies for the homestead and veteran exemptions. The additional exemption applies in proportion to that veteran's ownership interest.

Q: Does a 100-percent disabled veteran's exemption erase the other co-owner's property tax?
A: No. The opinion applied the full exemption to the qualifying veteran's share of the remaining taxable value, while calculating the other owner's share separately.

Q: Did the closed Orleans Parish tax roll prevent the veteran's 2024 exemption?
A: The opinion said it did not. For the facts presented, the office treated the homestead-related ownership and occupancy rule as governing the claim instead of the August 1 cutoff for other exemptions.

Q: How did the opinion calculate a partial owner's exemption?
A: It applied the homestead exemption to the property, divided the remaining value according to ownership percentages, and applied the additional veteran exemption proportionally to the qualifying owner's share.

Background and statutory framework

The opinion described La. Const. art. VII, § 21(K)'s additional exemptions for disabled veterans as depending on qualification for the homestead exemption under La. Const. art. VII, § 20. It described different exemption amounts for service-connected disability ratings of 50, 75, and 100 percent. Its example used 95-percent and five-percent co-owners, with the veteran holding the smaller share.

La. R.S. 47:1703(B) supplied a general August 1 status date for certain Orleans Parish exemptions, but the opinion read its homestead exception together with La. R.S. 47:1703(A)(2). The office concluded that the described veteran's 2024 application could be honored because the applicant owned and occupied the property by December 31, 2023. It did not explain a separate procedure for adjusting an already closed tax roll.

Citations and references

• La. Const. art. VII, § 20 (homestead exemption discussed in the opinion)
• La. Const. art. VII, § 21(K) (additional disabled veteran exemption)
• La. R.S. 47:1703(A)(2) (homestead ownership and occupancy requirement)
• La. R.S. 47:1703(B) (Orleans Parish status date and exception discussed)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/24-0023

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

STATE OF LOUISIANA
DEPARTMENT OF JLSTICE
OFFICE OF THE ATTORNEY GENERAL
P.O. Box 94005
BATON RouoE, LA
70804-9005

Liz MURRILL
ATTORNEY GENERAL
May 1, 2025
OPINION 24-0023

The Honorable ErrolI G. Williams
4-ASSESSORS

Assessor
La. Const. art. VII, §20 La. Const. art. VII, § 21
La. R.S. 47:1703
LAO 61:V.1O1
Parish of Orleans
1 300 Perdido Street, Room 4E01
Addresses questions surrounding the implementation of the
disabled veteran ad valorem tax exemption under La. Const.
New Orleans LA 701 1 2
art. VII, § 21(K).

Dear Assessor Williams:

You have requested an opinion from this office concerning La. Const. art. VII, § 21(K) and the ad valorem tax exemptions it provides for certain disabled veterans. Specifically, you seek clarification regarding a veteran with a one-hundred percent (100%) service- connected disability rating who, in 2023, received a donation of a five percent (5%) ownership interest in the house he currently occupies. Following this donation, the disabled veteran submitted a qualified veteran property tax exemption application for the property for the 2024 tax year, which your office received on January 1 1 2024.
,

You also note the following:

I The application was received after the Orleans Parish 2024 tax roll was closed.
.

2. The receipt date of January 1 1 2024, fell after Orleans Parish’s specific deadline ,

of August 1 2023, as mandated by La. R.S. 47:1703(B), to determine exemption ,

status for real and personal property for the upcoming year.

You inquire (1) how to apply this new exemption for applicants with partial or unequal ownership of assessed property and (2) whether the exemption applies to the 2024 tax year, given the application was received after the close of the Orleans Parish 2024 tax roll.

Question I : How does an assessor apply the exemptions contained within La.
Const. art. VII, § 21 (K) for a qualified disabled veteran applicant who has only partial or unequal ownersh!p of the assessed property?

Conclusion: It is the opinion of this office that a qualified disabled veteran applicant, who has partial ownership of a property, for which he or she claims a pro rata share of the homestead exemption, may also claim a pro rata share of veterans exemption proportionate to his or her ownership interest in the property,

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Honorable Erroll G. Williams
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and may reduce or fully eliminate the tax liability associated with that share, depending on the veteran’s disability rating.

Question 2: When a disabled veteran submits an ad valorem tax exemption application in Orleans Parish after the tax roll has closed and tax bills have been issued, and otherwise meets the qualifications for the exemption, what is the appropriate tax year to apply or commence the additional exemption?

Conclusion: The disabled veteran ad valorem tax exemption may be applied to the tax year for which a qualified application is submitted, provided the applicant owned and occupied the property by December 31st of the calendar year for which he or she is claiming the exemption, per the requirements for a homestead exemption as outlined in La. R.S. 47:1703(A)(2).

Legal Background and Analysis

The Louisiana Constitution was recently amended to include additional ad valorem tax exemptions for disabled veterans. These exemptions, codified in La. Const. art. VII, § 21(K), are applied in addition to the bona fide homestead exemption within La. Const. art. VII, § 20. For a disabled veteran to access the veteran exemption, they must first qualify for the homestead exemption on the same property.

The homestead exemption allows for a property tax exemption on the first $75,000 of a property’s fair market value (FMV), equating to $7,500 of assessed value. A qualified veteran is eligible for an additional exemption based on their service-connected disability rating:

. 50% disability: Additional exemption on the next $25,000 FMV/ $2,500 of assessed value.
. 75% disability: Additional exemption on the next $45,000 FMV/ $4,500 of assessed value.
. 100% disability: Full exemption on the remaining assessed value.

To qualify, the applicant must:

1. Beaveteran,
2. Have a service-connected disability rating of at least fifty percent (50%), and 3. Own and occupy the property in question.

To determine the appropriate application of the exemption, we must first determine the ordinary property tax liability as it relates to the application of the homestead exemption. In cases of shared ownership, La. Const. art. VII, § 20(A)(6) specifies that property owned by multiple individuals may still receive the homestead exemption, distributed commensurately with each owner’s pro rata share. The tax liability is calculated for each owner based on their share of the taxable value, after factoring in exemptions. The homestead exemption of $75,000 is first applied to reduce the taxable value of the

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Honorable Erroll G. WilHams
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property. Each co-owners share of the remaining taxable value is determined pro rata based on their ownership percentage.

The additional veteran’s exemption follows the same proportional methodology. In using the example you have provided where one person owns 95% of the property and the other owns 5%, the Louisiana homestead exemption is first applied to the market value, reducing the total value of the property by $75,000. The remaining taxable value is then distributed between the co-owners based on their ownership percentages. Each co owner’s property tax liability is calculated by applying the tax rate to their respective share of the taxable value.

I Homestead Exemption: The standard Louisiana homestead exemption ($75,000) .

is applied to the entire property’s assessed value. This reduces the overall taxable value of the property before distributing responsibility among the co-owners.
2. Pro Rata Taxable Share: Each owner’s share of the remaining taxable value is determined based on their ownership percentage. For example, a 95% owner is taxed on 95% of the total taxable value, while a 5% owner is taxed on 5%.
3. Veterans Exemption Application: If one of the co-owners qualifies as a disabled veteran, their additional exemption is first determined based on their disability rating: $25,000 for a 50% disability, $45,000 for a 75% disability, or the remaining taxable value for a 100% disability. This exemption amount is then adjusted pro rata based on the veteran’s ownership interest. For instance, a veteran with 75% disability who owns 5% of the property would receive an exemption based on 5% of $45,000. For veterans with 100% disability, their pro rata share of the taxable value is fully exempt.

For further illustration purposes, we provide the below example calculation.

Example: Split Ownership with a Qualified Veteran:

. Home FMV: $500,000 ($50,000 assessed value)
. Homestead Exemption: $75,000 (translates to $7,500 assessed value)
. Tax Rate: 1 % of FMV
. Ownership Split: Person A (95%) and Person B (5%, veteran with qualified service disability)

Steps:

I Total Taxable Value After Homestead Exemption: Subtract $75,000 from the home .

FMV: $500,000 $75,000 = $425,000 Total taxable FMV = $425,000
-

2. Calculate Ownership Shares of Taxable FMV:
   o Person A (95% ownership): $425,000 x 0.95 = $403,750
   o Person B (5% ownership): $425,000 x 0.05 = $21,250
3. Preliminary Tax Liability: Apply the 1 % tax rate to each taxable value:
   o Person A (95% ownership): $403,750 x 0.01 = $4,037.50
   o Person B (5% ownership): $21,250 x 0.01 = $212.50

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4. Veteran’s Exemption Adjustments:
0 For 50% Disability: $25,000 FMV exemption translates to $2,500 assessed value. For 5% ownership: $25,000 x 0.05 = $1 250 Adjusted taxable value:
$21 ,250 $1 250 = $20,000 Tax liability: $20,000 x 0.01 $200.00 —

0 For 75% Disability: $45,000 FMV exemption translates to $4,500 assessed value. For 5% ownership: $45,000 x 0.05 = $2,250. Adjusted taxable value:
$21,250 $2,250 = $19,000 Tax liability: $19,000 x 0.01 = $190.00
-

0 For 100% Disability: Full exemption on taxable FMVfor Person B: $21,250 $21 250 = $0 Tax liability
—

Final Breakdown:

. Person A (95% ownership): Owes $4,037.50.
. Person B (5% ownership):
0 Without Disability: Owes: $212.50
0 With at least 50% Disability: Owes $200.00 0 With at least 75% Disability: Owes $190.00.
0 With 100% Disability: Owes $0.

In light of the above, it is the opinion of this office that a qualified disabled veteran with partial ownership of a property, for which he or she claims a pro rata share of the homestead exemption, may also claim a veterans exemption proportional to his or her ownership interest in the property, potentially reducing or eliminating their tax liability depending on their service-connected disability rating.

You also indicated that your office received an application on January 1 1 2024, from a ,

disabled veteran seeking the additional ad valorem tax exemption on a property for which he holds a parhal ownership interest. The question is whether the exemption applies to the 2024 tax year, given the late receipt of the application.

As with the previous inqury, this matter must be analyzed in light of the established homestead exemption provisions (tied to the homestead exemption). While La. Const. arts. VII, § 20 and 21 set forth exemptions from state, parish, and special ad valorem taxes, La. R.S. 47:1703 provides guidance on how and when these exemptions may be applied.

1. Homestead Exemption Governing Principles: o La. R.S. 47:1703(A)(2) establishes that any taxpayer entitled to the h’mestead exemption under Article VII, Section 20 of the Louisiana Constitution must own and occupy the homestead on or before December :31st of the caendar year for which the exemption is claimed. This applies regardless of the property’s status on January 1st of the same year.

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2. Orleans Parish.Specific Rule:
0 La. R.S. 47:1703(B) establishes that Orleans Parish generally uses the August 1st status of real and personal property to determine eligibility for certain property tax exemptions for the following tax year.
0 However, it explicitly excludes the homestead exemption by referencing Paragraph (A)(2), ensuring that homestead exemptions (and related exemptions like the Disabled Veterans Exemption) follow the statewide rule of December 31st of the same year instead of the August 1 st rule.
C The reference to Paragraph (A)(2) in Section B ensures that homestead exemptions and related exemptions maintain consistency with statewide standards, even in Orleans Parish’s unique timeline for other exemptions.
3. The lnteracton Between Statewide Rules and Parish-Specific Rules:
0 For aI other types of property tax exemptions (such as exemptions for nonprofits, agricultural land, etc.), Orleans Parish uses the August 1st rule to determine eligibility for the following year, and other parishes use the January 1st of the calendar year rule.
0 For exemptions tied to the homestead exemption (like Disabled Veterans), the statewide rule of December 31st ownership and occupancy applies, even i Orleans Parisn, due to the explicit reference to Paragraph (A)(2) in Section B.

Furthermore, Section 101 of Part V of Title 61 of the Louisiana Administrative Code reiterates this pncle, saJng that [hjornestcad exemptions are allowable in any year in which the owner occupkd the home prior to December 31 ofthat year.” LAC 61:V.1O1 (F)(1 )(h).

For the homesteac exemption, the December 31st rule supersedes the general rules regarding property status on January 1st or August 1st which typically apply to qualify for other ad valorem tax exemptions,1 aligning with statewide standards outlined in La. Const. art. VII, § 20. The same principle extends to the Disabled Veterans Exemption as it is tied direcUy to the homestead exemption, which is governed by Paragraph (A)(2). This means that an appitcant who meets the service-connected disability criteria must also own and occupy the property by December 31st of the calendar year for which the exemption is being caimed.

The application submitted on January 11, 2024, was received after the August 1, 2023 cutoff for gene2l property exemptions in Orleans Parish. However, since the applicant

Examples of other nonhornestead related exemptions: Nonprofit Organizations, Agricultural Land, Historic Properties, ndustrh or rEconomic Development Public Property, Senior Citizens, Energy Efficiency or Renewable Energy, \iacant Lend or Conservation Areas.

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owned and occupied the property on or before December 31 2023, the statewide rule ,

under La. R.S. 47:1703(A)(2) prevails for homestead-related exemptions.

Thus, it is the opinion of this office that the Disabled Veterans Ad Valorem Tax Exemption may apply to the 2024 tax year, provided the applicant meets the ownership and occupancy requirements for the homestead exemption as outlined in La. Const. art. VII,
§ 20 and La. R.S. 47:1703(A)(2).
We trust that this adeauatey responds to your request. If our office can be of any further assistance, p’ease do not hesitate to contact us.

With best regards,
LIZ MURRILL
ATTORNEY GENERAL

BY:

Jjiftin H. Lester
‘ssistant Attorney General

LM/JHL