Property Tax Alert: Louisiana

October 2006

The Louisiana local property tax assessments of segments of an intrastate natural gas pipeline located in Rapides and Ouachita Parishes were upheld.

Assessment of pipelines is based on fair market value, and pipelines are to be valued at cost less physical deterioration. The statutory guidelines also provide for an allowance based on functional and economic obsolescence, and individual parish assessors are vested with discretion as to whether to grant obsolescence. Based upon a review of the record, the taxpayer did not provide the Rapides Parish Assessor with any substantive evidence prior to the close of the tax rolls of diminished capacity in support of its demand for obsolescence. Thus, the assessor did not abuse his discretion in denying obsolescence, and the assessment of the portions of the pipeline in Rapides Parish was proper.

Please contact Rash & Associates for more information.