Business Zoning in New Orleans

Many are already aware of property taxes but in New Orleans but moveable property taxes are required to be paid. Moveable property is considered to be any physical property other than normal real estate with a monetary value. Common examples of moveable property could include:

• Fixtures
• Furniture
• Inventory
• Machinery
• Equipment

Property like motor vehicles have their own set of rules and are not considered moveable property in Louisiana. 

Moveable property taxes in Jefferson are considered to be ad valorem taxes. Ad valorem is a Latin phrase meaning “to value”. The amount of tax is based on the property’s assessed value. In Louisiana assessed value on all moveable property is 15% of its fair market value. The Jefferson Parish law states that every person, association, company, or corporation who owns or holds any tangible business personal property is required to report it annually to the parish assessor. The fair market value of the moveable property is then determined for the current tax year.

Jefferson Parish residents receive LAT forms before mid-February from the assessor’s office via mail. The LAT form is a self-reporting tax form for all moveable property. It is the responsibility of citizens and business owners to complete the tax form and mail it back to the assessor’s office. It is to be turned in before April 1st or 45 days after receipt whichever is later. 

Upon a written request an assessor can grant an extension of up to 30 days longer. For those that do not receive your form in the mail or for some reason it has been sent late, the LAT form can be downloaded from the Louisiana Tax Commission website.

When completing the form, all moveable property must be listed on the LAT form. The acquisition date of each property as well as the cost of the property must be included. The assets are depreciated according to a schedule furnished by the Louisiana Tax Commission. 

For 15 days between August and September, the assessment lists of Jefferson Parish are open for public inspection. During this inspection period, taxpayers are encouraged to check the values assessed on their property. 

If the property owner wants to dispute the assessment, they may fill out a form to schedule a hearing and appear before the parish board of review. The form is known as Form 3101 – Notice of Appeal Request for Board of Review available on the tax commission website.

The date of the hearing is a local news and will be posted in the newspaper. The board will determine if changes need to be made to the assessment. If the assessor or taxpayer is not satisfied with the decision of the board, they either could file another appeal form. Form 3103A will be sent for further review by the Louisiana Tax Commission.

If a LAT form is filed past the due date then the option to dispute assessment cannot be disputed. Late filings give up the legal right to contest the determination of fair market value by the parish assessor per Louisiana law.

Receiving Your Tax Bill and Avoiding Interest

Tax bills can be expected in late November via mail. The taxes become due on December 1st and will be marked delinquent if not paid by December 31st. An interest rate of 1% per month is added to the delinquent account until the taxes are paid in full. 

When receiving this bill other charges could be included with the ad valorem taxes. Additional taxes that could be included on the tax bill are:

• Outstanding parish liens 
• Louisiana Tax Commission fees
• Special security district charges 

Failure to pay could pose different outcomes if the owner has been notified of the payment. The property could be at risk to be seized, advertised, and then auctioned off to the highest cash bidder for ownership. The tax debtor is notified of the sale similar to a foreclosure “tax sale” on real property. 

The city of New Orleans requires every business operating from a location within New Orleans to pay an annual tax known as the occupational license. Every year between January 1st and the end of February businesses are required to renew it. It’s important to understand that this tax is in addition to annual registration with the Secretary of State, sales tax, and federal taxes. Therefore, it is not included in those taxes and fees.

This tax can be paid in person at city hall or online at nola.gov to pay the tax. 

Paying the Occupational License Tax Online

After going to the city’s general website, go to the online portal, and create an account. After logging in, there will be a list of online services available on the webpage. Click the service listed as Bureau of Revenue.

Paying for the first time requires linking your business occupational license account with your online city portal account. There will be an option to add an account on the page.

Go to the tax form drop-down menu and select Occupational License Renewal and enter your account code that can be found on your occupational license. If unable to locate the account code then the city hall must be contacted in person or be called.

After linking accounts, payment can be accepted online. However, it generally takes up to 48 hours for the city to approve the registration.

New Orleans has a zoning ordinance in place for property owners that did change several years back. Every property owner in New Orleans owes it to themselves to use their zoning lookup tool to check what zoning district their property is located in. 

If a business falls in a future land use zone, they could get a zoning change. There is a timeline for doing so and if requested it may not be guaranteed.

The legislative process takes 6 weeks at a minimum but other factors like neighborhood opposition and concerns from the city council could extend the process. 

The Process for Zoning Changes

1. The City Planning Commission (CPC) acts on an application
2. CPC staff sends transmittal document to the clerk of council
3. Transmittal document is formally received as a communication onto the council’s agenda
4. The city acts on the application between receiving the application and the deadline unless it’s been deferred
5. The city council submits a motion after voting to the clerk 
6. The clerk forwards motion to the law department for preparation of an ordinance
7. While the law department prepares for the audience the motion is sent to the city council to be approved and have a calendar number assigned
8. The land use ordinance must ‘lie over’ for a mandatory 21 days then placed on the council’s consent agenda
9. City council passes all final ordinances on the consent agenda
10. Ordinances are sent to the mayor for their signature with a maximum of 10 days to sign before it becomes law without their signature
11. Ordinances are returned to the clerk of council and go into effect at noon on the day after they are signed
12. The City Planning Commission needs to give final stamped approval of building plans
    1. Waivers and provisions must be printed verbatim on the title page of the drawings
    2. Compliance of waivers and provisions should be graphically illustrated on the plans
13. If any revisions are needed then they are approved by City Planning Commission for final approval 
14. A final stamped approval of building plans, a zoning approval letter, and a certified copy is picked up from the CPC
15. Plans must be filed in the Office of Conveyances 
16. A building permit can be retrieved from the CPC once everything is recorded

There was a burger joint that opened years back by the name Juicy D’s. The windows of the restaurant are covered by neon lights and window canopies display the name and mark of Juicy D’s.

According to the City Planning Commission, only two canopies were approved to have the name and no neon lights were approved for the windows. Many wondered why this was done or if it was even requested on any application. Perhaps they thought it was better to ask for forgiveness than ask in the first place. Another local business did that when it came to a liquor license and it looked like the city was okay with this type of zoning behavior. 

Maybe it was a mistake made somewhere in the process. Some sort of communication breakdown or misunderstanding but who knows?

The point of this example was to understand if a business decides to deviate from the plans you file with the city, make sure you have a contingency plan in place. Expect attention, fines, and additional expenses to bring your business back into code. 

When New Orleans Culture Clashes with Zoning Disparities

New Orleans is a city that depends on our food and music to drive tourism, our largest industry. There are celebratory events like Mardi Gras and jazz concerts that may heighten the noise and occupancy in some hotspot areas in the city.

Residents in the French Quarter and Marigny have attempted to get noise in the area lowered as club and music venues have produced increased noise levels. The New Orleans Municipal Code is where the stipulations on this can be found.

According to code, the maximum level of noise is based on the zoning of land receiving the sound as well as the time of day. There is a confusing chart that doesn’t provide an easy way to know if the noise is too loud. This could be the reason why there’s been so much debate and allegations of nonconformity.

This issue for residents could pose an issue for certain business locations. If a business would prefer to avoid a louder environment than locations next to entertainment is suggested. However, if a business operates during opposing hours then that could also work. For example, a business operating during the day as opposed to a closeby club operating during night hours.

The location has also been such a major part of a business’s operations. Doing due diligence on the area and understanding zoning laws is needed to avoid any possible legal troubles. Contact a lawyer to help with the process of preparing your business location.