La. R.S. 33:4712.10 states that political subdivisions may not purchase immovable property valued at more than $3000 unless the property has been appraised by a qualified appraiser. The AG has opined that this provision means political subdivisions may not pay a price for immovable property that exceeds the appraised value. See, AG Op. No. 09-0293.
R.S. 33:4712.10 also states that “[n]o such appraisal shall include the value of improvements proposed to be made to the property after purchase by the political subdivision.” In one case discussing this provision, the AG opined that an appraisal of property that included value of improvements to be made to undeveloped land could not be used by the political subdivision to determine Fair Market Value, as such an appraisal violated R.S. 33:4712.10. See, AG Op. 08-0001.
In this case, although the property is being used by its current owner for residential purposes, the property is currently zoned as light commercial. The appraiser should take the current zoning of the property into account in his/her appraisal, but should not include the value of the improvements the District plans to make to the property in his/her appraisal.
Louisiana Legislative Auditor website: 05/08/2025 11:37:50 PM
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