Moreno Proposes Vote on Infrastructure Fee for Nonprofits

New Orleans Mayor Helena Moreno is proposing a 2027 vote that could require nonprofits to pay a share toward the city’s infrastructure, according to a report by Fox 8.

The proposal centers on an infrastructure fee aimed at addressing the city’s funding needs for stormwater management and general upkeep. Moreno shared the idea via social media on Sunday, Nov. 8, following the release of a report from the Bureau of Governmental Research (BGR).

Instagram

The BGR report reveals New Orleans collects no property taxes on 37 percent of its real estate, showing a gap in the city's tax base. This untaxed portion includes public property, homestead-exempt properties, developmental incentives, and various nonprofit entities.

Moreno noted that the conversation regarding these properties paying for city services is not new. She referenced a similar report from 1996 to emphasize that the debate over the tax burden of exempt properties has persisted for decades.

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

Under the current system, several categories of nonprofit-related real estate do not contribute to the property tax pool. The BGR report specifies that these include properties owned by organizations dedicated to religious, charitable, health, welfare, fraternal, or educational purposes.

The list of exempt entities also encompasses:

Property leased to nonprofits for use as homeless housing.
Property belonging to bona fide labor organizations involved in collective bargaining.
Property owned by lodges or clubs organized for charitable or fraternal purposes.
Property held by nonprofit corporations promoting trade, travel, or commerce.
Property used for cultural, civic, or Mardi Gras Carnival activities that are not operated for profit.

The proposal targets nonprofits to increase funding for stormwater and infrastructure, but the specific financial impact is unknown. It is currently unclear how much the fee would cost these organizations or how much revenue the city would actually recoup to address its budget deficit.

The potential shift in how nonprofits contribute to the city has drawn immediate reactions from major local institutions and community leaders. For large-scale providers, the argument rests on the massive amount of uncompensated value they already inject into the local economy.

Moreno Proposes Vote on Infrastructure Fee for Nonprofits

“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,” LCMC Health said in a statement.

Community advocates, however, are weighing the potential benefits of increased infrastructure funding against the need for transparency. Cheryl Austin, the executive director of the Greater Tremé Consortium, expressed a cautious willingness to support the move if it yields tangible results for flood prevention.

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

Austin also emphasized the need for rigorous oversight regarding the proposed funds. She stated that she would want to see more than just an investigation, specifically asking, “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.”

As of now, Mayor Moreno has not identified a specific target election date for the proposed vote.