News

May 15, 2019 | From City of New Orleans

Mayor Cantrell Issues Statement Regarding SB110, Lawsuit Filed by Orleans Parish School Board

NEW ORLEANS – Mayor LaToya Cantrell today issued the following statement regarding Louisiana Senate Bill 110, being considered by the State Legislature this session. The City will not see any additional revenue from the bill, but only offset the expenses incurred by collecting taxes for third-party entities:

“The sole goal of this legislation is to ensure that all costs incurred by the City of New Orleans associated with the collection of ad valorem taxes are covered,” said Mayor Cantrell. “We want everyone to be clear on exactly what this bill does and does not do. This bill is designed to ensure accountability, as part of our fair share initiative – to make sure that the City of New Orleans is covered for the expenses we incur on behalf of other entities. The City is not seeing any profit on this, the effected entities will see no net change to their outlay, and we are not taking one dime away from anyone in terms of new or additional costs.”

In addition, as the Orleans Parish School Board (OPSB) has filed suit against the City in relation to the legislation being considered, City Attorney Sunni LeBeouf added the following:

“While the current Administration inherited the issues raised in the OPSB lawsuit, Mayor Cantrell has been, and remains a supporter of the Orleans Parish School Board and the children of this City. The Mayor is committed to ensuring that the City recovers the costs it incurs by collecting taxes on behalf of the people she serves – including all children and families.” 

LA SB110 provides for adjusting the ceiling of collection fees for the first time since 2005. After fourteen years with no adjustment, the City is seeking greater flexibility to adjust the fee going forward. This will prevent needing to return to the legislature multiple times for any additional needed adjustments.

The charge to third-party entities for the collection of ad valorem taxes, begun in 2012 long prior to the current administration, is made solely to offset the cost to the City. With the passage of SB110, no entity currently benefiting from the City’s efforts will incur additional costs. Their current costs, presently categorized separately as fees and additional expenses, will be folded into a single fee – combining them without adding additional expense.

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