Amendment 4 has too many negatives
Published 6:00 pm Friday, September 27, 2019
Constitutional Amendment 4 on the Oct. 12 ballot would give New Orleans a tax exemption for affordable, residential housing, but on examination, the negatives outweigh the positives. We recommend a no vote.
The amendment would establish property tax exemptions, only in New Orleans, for residential properties that provide affordable housing. Developments over 15 units and short-term rental properties, such as for Airbnb lodging, would be ineligible, according to the evaluation of the Louisiana Public Affairs Research Council’s Guide to the 2019 Constitutional Amendments.
In the argument for the amendment, the guide notes that giving government another tool to handle local issues such as affordable housing only makes sense. One argument for the amendment is a genuine need for more affordable housing in New Orleans.
An argument against, however, points out Amendment 4 could diminish a critical and evolving revenue base for New Orleans at a time when a disproportionate portion of city property is already exempted.
The against argument also notes that low-priced owner-occupied homes already benefit from the $75,000 homestead exemption. There are also several state and federal programs that exist to address urban housing problems
“The definition of ‘affordable’ could be made so broad that the program could give a tax break to developers more than to actual home dwellers,” the guide notes.
It may also make citizens who enjoy the tax break less sensitive to the impact of higher tax millage proposals that would be burdensome to other property owners in the future. In addition, there is a danger that it could increase pressure to raise other taxes, as well.
Perhaps the most persuasive argument against this amendment is it creates a high risk for abuse and favoritism. This state does not need more incentives for public corruption.
And finally, giving this new authority only to New Orleans could cause a rush of other parishes and municipalities seeking further constitutional amendments that want the same authority. Creating inequality in government could be dangerous.
On balance, there are too many possible negatives to Amendment 4, and we recommend a no vote.
