Mayor Helena Moreno recently proposed a 2027 referendum to introduce an infrastructure fee on tax-exempt properties in New Orleans. This move aims to address the sizable amount of property exempt from taxation, including those owned by nonprofits, universities, and hospitals.
Moreno’s proposal follows a report from the Bureau of Governmental Research (BGR), which highlighted that nearly 37% of New Orleans’ real estate, valued at approximately $2.74 billion, is exempt from property taxes. The report suggests that instituting such a fee could ensure these properties contribute to infrastructure costs, potentially reshaping the financial landscape for local property owners.
The fee proposal draws attention to the broader implications for institutions holding large real estate portfolios. If implemented, it could alter the operating costs and capital planning for significant property holders in the area, such as universities and hospitals.
BGR’s report suggests that taxing all exempt property could generate an estimated $316 million annually. However, the exact structure and logistics of the proposed fee remain under discussion, with a 2027 vote being the next potential milestone.
As this proposal develops, it presents both legal and operational challenges that could impact real estate strategies. Stakeholders across the city, particularly in the nonprofit sector, will need to consider the effects on their budgeting and development plans.
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