SELA 5-mill tax was waived after storm
Property owners in Jefferson Parish could see an increase in their tax bills this fall should the Parish Council revive a dormant millage originally meant to help pay for federally subsidized drainage projects.
After Hurricane Katrina, Jefferson lawmakers waived the 5-mill tax, which voters first approved in 2001 to pay the local freight for federal projects under the Southeast Louisiana Urban Flood Control program, or SELA. The federal government paid 100 percent of SELA costs in 2006, rendering the local tax unnecessary.
Two recent actions — one local, one in Washington — have revived the issue.
On July 21, Jefferson voters freed the SELA tax dedication to allow the revenue to be used on other, locally sponsored drainage projects. But Congress decided to reinstate the 25 percent local match when it approved $25.3 million this summer for SELA in 2008, thus reviving the need for the 5-mill tax on federal projects.
Council members on Monday characterized revival of the local levy as an end to a tax break rather than a tax hike.
“The key is it’s not really a tax increase, just back to what it was before,” Councilman John Young said. “The new twist on it is it’s the same tax, but now we have new flexibility.”
Congress’s move, however, effectively cancels the council’s ability to redistribute the money to local projects. It must still be used to pay for SELA projects first, and only if it generates a surplus can any money be spent on local drainage.
“The bottom line is it may well end up being useless because it looks like the feds are scaling back their 100 percent SELA funding,” Councilman Chris Roberts said.
While local officials continue to lobby Congress to suspend the local match again, some said the millage will be reinstated anyway.
“If Congress had said we’ll do everything for nothing, that would have changed the dynamic,” council Chairman Tom Capella said. “We may have collected less or collected the full amount and used it for internal drainage.”
By Richard Rainey, New OrleansNet LLC
