Tax Rolls and Delayed Demolitions

New Orleans can't begin serious demolition work, including removing houses that were tossed into the street by the onrush of floodwaters as the levees broke. Yet they're talking about Carnival. Priorities. You've got to love them.

Why is there a holdup on the demolitions? Lawsuits by community activists and some homeowners.

In response, Lower 9th Ward residents and the People's Hurricane Relief Fund, among others, sued the city, saying homeowners deserve proper notice and a chance to argue against demolition before the bulldozers roll in.

What city attorneys call public safety hazards, activists and residents warn, may include people's personal property. The lawsuit, filed on behalf of all homeowners who may face mandatory demolition of their buildings, accuses the city of mistakenly deeming several homes uninhabitable.

Feldman may have to render legal definitions of exactly what constitutes "debris."

A few protesters Thursday sharply questioned Zibilich as he fielded questions from reporters, accusing the city of taking a callous attitude toward residents who may be displaced across the country and unable to return to New Orleans.

But city attorneys didn't cave in to the emotional allegations of wrongdoing. Almost five months after the hurricanes, they said, it is time to clear the streets of looming hazards.

A process will likely be arranged to permit landowners to enter the properties to reclaim personal possessions before the properties are demolished. And of course, the usual suspects are crying conspiracy and that the policies are racially motivated. The facts, however, paint a slightly different picture.

Meanwhile communities continue to struggle with the loss of tax rolls due to destroyed and demolished properties. Slidell, LA has struggled with the problem and finally decided to go with a reassessment of property instead of using a pro-rata asessment.

"Originally we thought the prorated method would have been the best way," she said. "But after we got there we found out that reassessment would be better for the city. It could put us down $1.5 million, but we could be worse off.

"The pro-ration method had to go through a legislative process that could take a while. But with the assessment method we could send bills out in December and collect in January."

While Livaudais had said Slidell would take roughly a $1.5 million hit from the original 2004 tax collections before Katrina, documents provided to Slidell City Clerk Shawn McManus by St. Tammany Parish Assessor Patricia Schwartz-Core's office detail a further look into the books. With the reassessment method, Slidell will head a 19.5 percent loss from 2004 with the reassessment method versus a 16.35 percent loss from 2004 by prorating, a difference of about $165,000 after four months. Factoring in other losses, the grand loss in total from original projections pre-Katrina will equal about $1.5 million.

Likewise, states are also facing difficult issues on taxes. Mississippi is investigating adjusting numerous taxes, including the cigarette tax and taxes on groceries. Since the tax rolls have been seriously harmed, states need to reevaluate the tax burdens imposed - not only to maintain the current base, but to encourage people to return. It's a delicate balancing act, but tax changes are going to be an inevitable part of the rebuilding efforts.