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HB 961

TAX/AD VALOREM TAX: Extends eligibility to certain trusts for an ad valorem tax exemption for a property owner who is at least sixty-five years of age or older (EN SEE FISC NOTE LF RV See Note)

2026 Regular Session Introduced by Tehmi Chassion and 1 co-sponsor

Extends the senior homestead property tax exemption to certain trusts where the settlor meets age/eligibility, transfers naked ownership to the trust, and retains occupancy and usu

Effective date: See Act.
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WeVote Research Nonpartisan
Bill Summary · HB 961

Summary of Bill HB 961 (Louisiana, 2026 Regular Session)

What the bill would do ( main purpose )

  • Extends eligibility for the ad valorem property tax exemption (the Homestead Exemption for seniors) to certain trusts. Specifically, it allows a trust to qualify for the exemption if the settlor (the person who created the trust) meets the same age and eligibility criteria as a property owner who is at least 65 years old or is a surviving spouse, and certain trust conditions are met.
  • The bill intends to align trust-held ownership with the constitutional exemption framework that currently applies to individual owners and surviving spouses.

Key provisions and changes

  • Enacts new law: Adds R.S. 47:1717 establishing “Exemption for property of a person who is at least sixty-five years of age or older or a surviving spouse; eligibility for certain trusts.”
  • Eligibility criteria for a trust:
    1. The settlor (the person who created the trust) must meet the eligibility conditions for the exemption under Article VII, Section 21(P) of the Louisiana Constitution.
    2. The settlor was the immediate prior owner of the homestead.
    3. Naked ownership of the homestead is transferred to the trust (the bare ownership passes to the trust).
    4. The settlor retains a usufruct (the right to use the property and derive benefits from it) on the homestead.
    5. The settlor continues to occupy the homestead.
    6. The settlor would be eligible for the exemption if they had kept naked ownership themselves.
  • Applicability and timing:
    • The new provisions apply to taxable years beginning on or after January 1, 2028.
    • The act becomes effective on January 1, 2028, but only if the related constitutional amendment (originating as House Bill 514 of 2026) is adopted at a statewide election and becomes effective.
  • Interaction with constitutional amendment:
    • The bill references a proposed constitutional amendment that would authorize parishes and municipalities to extend an additional property tax exemption for homesteads owned and occupied by seniors meeting certain criteria and eligible for the special assessment level.
    • HB 961 works in concert with that amendment, extending the exemption to trusts that meet the specified conditions.
  • Administrative note: Adds new statutory language to provide the eligibility framework (R.S. 47:1717).

Who would be affected

  • Seniors (65+ years old) or surviving spouses who own a homestead and have set up a qualifying trust.
  • Trusts and their trustees/settlors who meet the detailed conditions (immediate prior owner, naked ownership transferred to trust, settlor retains usufruct, and occupancy maintained).
  • Parishes and municipalities, insofar as they may implement or extend additional exemptions under the proposed constitutional amendment (Article VII, Section 21(P)).

Significant procedural and timeline aspects

  • Effective date: January 1, 2028, contingent on the adoption and effectiveness of the companion constitutional amendment (House Bill 514 of 2026).
  • Applicability: Taxable years beginning on or after January 1, 2028.
  • Legislative action history indicates prior readings and committee consideration, with floor debate scheduled around April 2026.

Practical implications

  • The bill could broaden the pool of eligible recipients for the senior property tax exemption by including certain trusts, potentially reducing real estate tax liabilities for seniors who use trusts to structure ownership while preserving occupancy and usufruct rights.
  • Property owners considering trust arrangements should assess whether the settlor’s status and the trust’s structure satisfy the specified requirements to qualify for the exemption.

Note: This summary focuses on the substantive provisions as enacted and the relationship to the proposed constitutional amendment.

Compiled from official sources — confirm details with the bill’s official record.

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