New Orleans City Council Approves $23 Million Property Tax Hike

The New Orleans City Council unanimously approved a property tax increase on Thursday to mitigate a significant budget deficit. The measure, a millage roll forward, raises certain property tax rates to the maximums previously authorized by voters. The hike is expected to generate approximately $23 million annually to fund sanitation, Mardi Gras parade cleanup, and low-barrier homeless shelters.

For a homeowner with a $300,000 home and a homestead exemption, the increase will add $101.83 to their annual bill. Mayor Helena Moreno described the vote as a responsible decision to restore long-term financial security. Councilmembers Jason Hughes and Lesli Harris supported the measure to prevent gutting the city workforce and maintain essential services, while Council Vice President Matthew Willard voted for the increase after initial opposition.

Despite the new revenue, the city faces a remaining budget gap. Reports on the remaining deficit vary, with one source stating it has been reduced to $40 million and another indicating a $77 million deficit remains for 2027. The council is scheduled to vote on the final budget on November 19.