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College of Business E-Journal
Spring 2018 Volume XIII, Issue I
The Value of Residential Property in East Baton Rouge Parish
This report summarizes a study of the total value of residential property in East Baton Rouge parish and taxes collectable within the parish. This study also provides some general results measuring the accuracy of current assessments. However, it is important to note that our study focuses on estimating the total value of residential real estate over regions, such as census blocks or the parish as a whole. Thus, this study’s intent is not to provide a tool for assessing the value of individual homes.
The key findings are:
- The data provided by the Assessor’s office to the Louisiana Tax Commission appears to fail to capture many sales within the parish and is in general
- Assessment ratios generally suggest that assessments undervalue the total value of residential property in East Baton Rouge
- An initial examination of self-reported Census data on home values within the parish suggests that the total value of residential property in the parish is substantially higher than the total value implied by the assessor’s
- Excluding properties with assessed values frozen due to exemptions, the preferred model suggests total taxes collectable of roughly $200 million in 2011, almost $41 million above the taxes collected based on current assessments for the properties considered.
- Results of the preferred model suggest cumulative revenue foregone of just over $270 million from 2005G2011 due to underassessment.
- Because 2012 data on sales was very incomplete, our models cannot be estimated. However, it should be noted that the assessor’s 2012 reassessments led to an increase of just under $13 million in taxes collectable on the properties of interest. This implies $28 million in additional taxes collectable if housing prices were unchanged from 2011.
Dek Terrell, Ph.D.
Lousiana State University
Danielle Lewis, Ph.D.
Southeastern Louisiana University