New Orleans, Louisiana, Proposition 1, Infrastructure Property Tax Measure (December 2020)
| New Orleans Proposition 1 | |
|---|---|
 | |
| Election date December 5, 2020 | |
| Topic Local property tax | |
Status Defeated | |
| Type Referral | Origin Lawmakers |
A special property tax to fund public infrastructure was on the ballot for New Orleans voters in Orleans County, Louisiana, on December 5, 2020. It was defeated.[1]
A "yes" vote supported replacing two taxes with a total rate of $4.40 per $1,000 of assessed property value that were set to expire in 2021 with a special tax of $2.619 per $1,000 of assessed property value for 20 years beginning on January 1, 2021, to fund public infrastructure. |
A "no" vote opposed replacing two taxes with a total rate of $4.40 per $1,000 of assessed property value with a special tax of $2.619 per $1,000 of assessed property value for 20 years beginning on January 1, 2021, to fund public infrastructure, thereby allowing the two taxes to expire in 2021. |
City officials estimated that the tax rate of $2.619 per $1,000 of assessed property value would generate $10.5 million in 2021.[1]
The tax would have replaced the Street Traffic and Control tax levied at a rate of $1.90 per $1,000 of assessed property value and the Capital Improvements and Infrastructure Trust Fund tax levied at a rate of $2.50 per $1,000 of assessed property value. The Street Traffic and Control tax was approved in 1991, and the Capital Improvements and Infrastructure Trust Fund tax was approved in 1995.[2]
A simple majority vote was required for the approval of Proposition 1.
Election results
|
New Orleans Proposition 1 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 30,557 | 43.57% | ||
|
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39,582 | 56.43% | ||
Text of measure
Ballot title
The ballot title for Proposition 1 was as follows:
| “ | In lieu of separate millages previously approved by voters in the City of New Orleans ('City') in the amount of 1.900 mills for street and traffic control device maintenance and 2.500 mills for the Capital Improvements and Infrastructure Trust Fund (collectively, 'Prior Taxes'), shall the City be authorized to levy a special tax of 2.619 mills ('Tax') for twenty years, January 1, 2021 - December 31, 2040 (estimated at $10,500,000 in the first year) with the proceeds of the Tax dedicated first to payment of debt service obligations secured by any of the Prior Taxes and then solely to public infrastructure in the City, to be used for the purposes of repairing, improving, maintaining and operating (i) roads, streets, and bridges, (ii) surface and subsurface drainage systems and stormwater management facilities, and (iii) public buildings and public safety facilities of the City, including purchasing related equipment and vehicles for any of the foregoing, provided that a portion of the monies collected shall be remitted to certain state and statewide retirement systems in the manner required by law? | ” |
Full Text
The full text of this measure is available here.
Support
Supporters
- New Orleans Mayor LaToya Cantrell (D)[3]
Arguments
- New Orleans Mayor LaToya Cantrell (D) said, "[The millage will] provide dedicated funding for the maintenance and repair of existing roads, streets, bridges, drainage systems, and facilities – as well as to purchase and maintain items with a life span of less than 10 years, such as vehicles, computers, and software. ... Flexibility in the proposed language is key – it allows the City to continue to spend these funds as infrastructure and technology needs change over the next 20 years."[4]
Opposition
Opponents
- Bureau of Government Research[5]
Arguments
- The Bureau of Government Research (BGR), a local nonpartisan think tank, said, "BGR has urged City leaders to re-examine New Orleans’ tax dedications for opportunities to redirect revenue to help meet important community needs without raising taxes. The City’s millage rededication proposal adheres to the spirit of that call. However, it does not give voters adequate information for decision making on taxes that would run for 20 years."[5]
Background
Street and Traffic Control tax
The Street and Traffic Control tax was approved by voters in 1991 and levied in 1992 at a rate of $1.90 per $1,000 of assessed property value. The estimated tax revenue for 2019 was $6.9 million. The city estimated that $4.2 million of the revenue would be used for city streets and $2.7 million for traffic controls.[2]
Capital Improvements and Infrastructure Fund tax
The Capital Improvements and Infrastructure Fund tax was approved by voters in 1995 at a rate of $2.50 per $1,000 of assessed property value. The estimated tax revenue for 2019 was $6.6 million. The city estimated that $884,207.00 of the revenue would be used for personal services and $7.3 million for debt servicing.[2]
Path to the ballot
This measure was put on the ballot through a vote of the New Orleans City Council on August 20, 2020.[1]
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 City of New Orleans, "Resoultion 20-266," accessed November 23, 2020
- ↑ 2.0 2.1 2.2 City of New Orleans, "Ad Valorem and Special Revenue Committee Meeting: Millages Expiring in 2021," accessed November 25, 2020
- ↑ The Lens, "City accused of misleading the public in campaign for property tax proposal," November 23, 2020
- ↑ Mayor of New Orleans, "2021 MILLAGE REDEDICATION," accessed November 25, 2020
- ↑ 5.0 5.1 Bureau of Government Research, "New Orleans Property Tax Propositions," accessed November 25, 2020
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