Moreno pitches vote that could see nonprofits pay share toward New Orleans’ infrastructure

NEW ORLEANS (WVUE) - New Orleans mayor Helena Moreno is proposing a 2027 vote that could result in nonprofits paying toward the city’s infrastructure.

Moreno posted on social media Sunday (Nov. 8), floating the idea of an infrastructure fee. She pointed to last week’s new Bureau of Governmental Research (BGR) report, which found the city collects no property taxes on 37 percent of New Orleans’ real estate.

That untaxed group includes public property, homestead-exempt property, developmental incentives and nonprofits.

“People have felt for many, many years that these properties should somehow pay city services. It’s been discussed, really, for decades at this point,” Moreno said, referencing a similar 1996 report.

Moreno said she wants to hone in on nonprofits for stormwater management and infrastructure funding.

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The BGR report lists nonprofits as the following:

• Property owned by nonprofits “organized and operated exclusively for religious, dedicated places of burial, charitable, health, welfare, fraternal, or educational purposes.”
• Property leased to a nonprofit as housing for the homeless.
• Property of a “bonafide labor organization” engaged in collective bargaining.
• Property of lodges or clubs “organized for charitable and fraternal purposes and practicing the same.”
• Property of a nonprofit corporation “devoted to promoting trade, travel and commerce.”
• Property of a nonprofit trade, business, industry or professional society or association.
• Property used “for cultural, Mardi Gras Carnival, or civic activities” and not operated for profit to the owners.

It’s unclear how much this could cost nonprofits, nor how much the city would recoup toward its budget deficit through a theoretical approval.

Fox 8 reached out to universities, hospitals, charities and religious organizations for this story.

LCMC Health released a statement that said, “As a nonprofit health care system, LCMC Health plays a vital role in the health and economic vitality of New Orleans. Each year, we provide $129M in charity care and uncompensated services, employ 15,697 people across the region and invest in programs that ensure our community has access to essential, high-quality health care.”

Cheryl Austin is the executive director of the Greater Tremé Consortium, an organization that promotes flooding prevention solutions.

“If it’s going to help, No. 1, reduce flooding, I think all properties should pay into the system,” she said.

However, she said she would want more information on the issue.

“(What) I would like to see done is not just a study, an investigation of what is actually needed, and where those funds would go if we had to pay an additional fee,” she said.

Moreno did not provide a target election date for the issue.

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