In what was a big surprise to local government officials, ad valorem assessments in Caddo Parish declined in 2016. At a time when the City of Shreveport and Caddo Parish are scrambling to continue past funding levels, this economic reality was not good news. The same can be said for the Shreve Memorial Library system, which has 13 libraries, three of which are in the parish. The total Caddo Parish tax assessments declined by almost $10,000,000 between 2015 and 2016. Most of this was due to the crash in values of oil and gas interests; this portion of the tax rolls declined by $34,000,000.

Additionally, many residential real estate assessments were lowered due to flooding. Fortunately, new construction and increased property values throughout the parish offset these losses and mitigated the total decline in revenues. The heavy rainfall in March of last year caused Cross Lake flooding, and the upstream rain in the Red River basin resulted in flooding along the river. Properties along Cross Bayou, which receives water from Cross Lake and empties into the Red River, were also flooded. Caddo Sheriff Steve Prator has advised that additional Red River flooding can be expected: “not if, but when.” Prator reported that urbanization along the Red plus heavy silting of the river due to the lock and dam at the Caddo-Bossier Port has decreased the capacity of the river and its flood plain. The Caddo tax assessor utilized a list provided by Caddo Homeland Security/Caddo Sheriff’s Office of calls from flood victims to mail letters to property owners regarding flood damage. Taxpayers who appeared at the assessor’s office with proof of flooding had their assessments reduced from 50 percent to 70 percent. These homes will be revisited this year to determine if repairs have been made and to re-adjust assessments for the then-current value.

"The total tax assessment for the parish declined in 2016 by over $6 million.”

The Louisiana Tax Commission reduced oil and gas valuations by an average of 15 percent from 2015 to 2016. The Caddo assessor reduced these properties 22 percent utilizing these guidelines plus the reduced number of non-producing wells and number of drilling rigs and plugged wells. The original information supplied by the City of Shreveport and Caddo Parish was that the value of property subject to taxation would increase by almost $30 million. As a result, the City Council reduced the millage from 17.65 mills to 17.29 mills to collect the same taxes in 2016 as in 2105. The final assessed value number for 2016 was almost $30 million less. This resulted in a decline in collections of over $550,000 from the 2015 levels. Caddo Parish enjoyed increased tax assessments since 1989. However, the total tax assessment for the parish declined in 2016 by over $6 million. Bossier Parish residential tax assessments fell in both 2105 and 2106. The decline in 2015 was almost $6 million, and it was over $5 million in 2016. These lower assessments were primarily in residential properties. Overall, the Bossier Parish tax assessment values increased by over $550,000.Whether or not 2016 was simply a blip on the tax assessment radar or not is an open question. Many Caddo homeowners and business owners did not realize that their tax assessments could be lowered, and more revaluations will probably be requested. Additionally, many properties that have been flooded will probably never increase in value to the 2015 levels simply because they flooded. Unfortunately, the reality of the 100-year flood plain will now be a constant affecting Caddo and Bossier property values and the revenues derived from property tax values.

John E. Settle Jr. is an attorney who has practiced in Shreveport-Bossier since 1977. His columns have appeared in local publications for more than 15 years. He can be reached at 742-5513 or e-mail to: john@jesettle.com.

Correction:

In the March 1-14 forum, we inadvertently ran the incorrect images of the John and Shannon Lawhead home at Provenance.

The photos should have been attributed to Jeff McGee. The updated photos will run in the April edition of CityLife Magazine.

We apologize for the error.