Liskow attorneys Cheryl Kornick, Bob Angelico, and Tyler Trew achieved a victory for the University of New Orleans Research and Technology Foundation (“UNORTF”) in a significant legal battle concerning property tax exemptions. The case was tried before the Louisiana Board of Tax Appeals, which found after a trial on the merits that the UNORTF was entitled to an exemption from 2022 and 2023 Orleans Parish ad valorem taxes for four buildings located in the UNO Research and Technology Park. The Board found that the subject property qualified for an exemption because it was being used for the public purpose of operating a research and technology park in support of the University of New Orleans pursuant to Louisiana Constitution Article VII, Section 21(A).
On appeal the Louisiana Fourth Circuit Court of Appeal affirmed the Board’s ruling explaining the legislature provided non-profit corporations, like UNORTF, with special powers necessary to accomplish its public purpose. The Fourth Circuit found UNORTF used these powers to accomplish its public purpose, and it thus engaged in a “public use” for purposes of Section 21(A). The Fourth Circuit held the legislature gave UNORTF and UNO the discretion to select tenants that UNO believed support the public purpose underlying the research and technology park. The legislature also gave UNORTF and UNO the discretion to forge connections between tenants and UNO in a way that best accomplished the public purpose of the research and technology park. The court emphasized that the activities of the taxpayer, rather than those of its tenants, were the determining factor in assessing whether the property served a legislatively recognized public purpose.
Following the Fourth Circuit’s decision, the Orleans Parish Assessor sought review by the Louisiana Supreme Court, and the Supreme Court denied writs. This denial marked the end of the legal journey for the UNORTF, solidifying their victory and confirming the tax-exempt status of their properties. This case sets a significant precedent for similar institutions seeking property tax exemptions in Louisiana and provides a clear legal framework for such entities.
A copy of the Fourth Circuit’s final ruling can be found here.
For further questions regarding this case, contact Liskow attorneys Cheryl Kornick, Bob Angelico, and Tyler Trew. Click here to read about Liskow’s Tax litigation experience.