TAX/AD VALOREM-EXEMPTION: (Constitutional Amendment) Authorizes a property tax exemption for blighted or derelict properties that have been rehabilitated (EN SEE FISC NOTE LF RV See Note)

2026 Regular Session Introduced by Regina Barrow and 6 co-sponsors

Allows optional local property tax exemption for rehabilitated blighted/derelict properties, defined and administered by law beginning tax year 2027.

Taken by the Clerk of the House and presented to the Secretary of State in accordance with the Rules of the House.

Purpose and Intent

Proposes a constitutional amendment to add an optional ad valorem tax exemption for blighted or derelict property that has been rehabilitated.

Requires the Legislature to define key terms (blighted property, derelict property, and related terms) and to establish the exemption’s duration, eligible beneficiaries, and administration procedures in law.

Intent: provide a targeted property tax incentive to encourage rehabilitation of blighted/derelict properties.

Key Provisions

Constitutional Change

Adds a new subsection to Article VII, Section 21 of the Louisiana Constitution (Proposed new Section 21(P)).

The new exemption would be in addition to the existing homestead exemption and other exemptions listed in the constitution.

The exemption is described as optional for political subdivisions to administer (i.e., local jurisdictions could choose to implement it).

Implementation and Administration

The Legislature must enact laws defining:

What constitutes “blighted property” and “derelict property.”
Any other terms necessary to implement the exemption.

The Legislature must establish in law:

The term of the exemption (how long it lasts).
Conditions, requirements, and procedures for a political subdivision to administer the exemption.

The exemption would be applicable to tax years beginning on or after January 1, 2027.

Effective Date and Election Timing

Effective January 1, 2027, for tax years beginning on or after that date.

The amendment is to be submitted to Louisiana voters at the statewide election on November 3, 2026.

Ballot language: Poses a Yes/No question asking voters to approve an amendment to allow property tax exemptions for rehabilitated blighted/derelict properties and to require the legislature to implement administration laws.

Who/What Is Affected

Property owners with rehabilitated blighted or derelict properties may be eligible, subject to:

Definitions adopted by statute for blighted/derelict property.
Local administration and eligibility criteria set by law.

Local political subdivisions (parishes/municipalities) would implement the exemption if they choose to adopt it, following state-law definitions and procedures.

County/municipal assessors would administer assessments under the new exemption framework as defined by law.

Procedural and Timeline Aspects

Legislative action: Requires enactment of implementing statutes by the Louisiana Legislature after the constitutional amendment is approved.

Constitutional amendment process:

Approved by two-thirds in both houses.
Submitted to voters at the November 3, 2026 statewide election.
If approved by voters, becomes effective January 1, 2027.

Implementation readiness: The exemption would apply to tax years beginning on or after January 1, 2027, contingent on enacted implementing laws.

Additional Notes

The bill text emphasizes that the exemption is optional for subdivisions, meaning counties/parishes can choose whether to offer it and under what terms.

The proposal preserves the existing framework for ad valorem exemptions and adds a new, rehabilitated-blighted property exemption pathway, subject to legislative definitions and administration rules.

Bill