New Orleans Lowers Tax Rates

"Making good on a unanimous pledge, the New Orleans City Council slashed the city's tax rate by 27 percent to 128.44 mills, a rate that makes owning property in the city competitive with neighboring Jefferson Parish for the first time in years."

"The action, made possible by a huge readjustment of historically inaccurate property assessments in New Orleans, also brings the city's tax rate well below that of St. Tammany Parish, the suburb that has drawn city dwellers like a magnet in recent years. "

"The news should make the new property valuations -- massive spikes for some homeowners -- somewhat more palatable. For instance, the owners of a home that was valued at $750,000 last year and is now appraised at $1 million should see virtually no increase in their taxes. The same would apply to the owners of a home whose value went from $200,000 to $250,000. "

"State law requires taxing bodies to lower millage rates after property is reassessed so higher property values don't result in automatic windfalls to government. However, with a two-thirds vote, local governments may then "roll forward" the millages to their previous rates." 
Times Picayune 12-01-07