AG: CATS tax is homestead exempt
by REBEKAH ALLEN - Advocate (excerpt)

The 10.6-mill parish bus tax approved by voters in Baton Rouge and Baker last month qualifies for homestead exemption, contrary to CATS officials’ earlier claims that it was ineligible, according to an opinion issued Wednesday by Attorney General James “Buddy” Caldwell. The homestead exemption shields homeowners from being taxed on the first $75,000 of their assessed property value.

The application of homestead exemption means property owners will be paying less on their property tax bills than was originally stated when the Capital Area Transit System was campaigning for the bus tax. It also means CATS will be shorted about $3 million in annual tax revenue for service improvements. Caldwell issued the opinion Wednesday, in response to a query by state Rep. Alfred Williams, D-Baton Rouge. The homestead exemption does not apply to municipal taxes but Caldwell said in his opinion that the CATS tax does not fit the definition of a municipal tax.

“A ‘municipality’ means an incorporated city, town or village. Since CATS is not a city, town or village, it is the opinion of this office that any special ad valorem tax levied by it is subject to the homestead exemption,” Caldwell said.