(The Center Square) – A coalition of 37 Bossier City business owners filed a petition with the Louisiana Board of Tax Appeals challenging the legality of a new public works fee that dramatically increased water bills for apartment owners.
The petition, Landmark Realty v. City of Bossier, filed March 11, alleges that the city created an illegal tax in violation of the Louisiana Constitution. The business owners are represented by Phelps Dunbar LLP, a New Orleans-based law firm.
In a May 7 response, Bossier attorneys Drew Talbot and Zelda Tucker said the fee is not a tax and the businesses are not entitled to any monetary relief. A hearing is scheduled in July.
If the ruling by the Louisiana Board of Tax Appeals goes against the city, it may have to repay those owners, according to the petition.
The filing for tax relief estimates that the city will take in $3.7 million in fees in 2026. That money is placed in the city’s general fund, according to the document.
Last year, the city introduced an ordinance that charges a $12 fee per address, instead of per meter. For multifamily or apartment owners, that charge is levied for each apartment unit, which caused a dramatic increase in their monthly payments to the city, according to The Center Square’s investigation.
Many apartment properties utilize a single master meter and were previously charged a flat rate per water meter. Owners can either shoulder the additional cost or pass it on to their tenants, an “unfair and unexpected financial burden placed on apartment communities and their residents,” owners have said.
The fee is in addition to the metered water bill, and it first appeared as a “beautification fee,” later switching to a “sanitation fee,” one property owner told The Center Square.
Ty Alley, with Landmark Realty, told the City Council last year that it was a “shock” after receiving their February water bill, which went from $48 per month to $6,744, for four multifamily complexes. Another manager, Shannon Hollier, director of operations at Fairfield Property Management, said it increased their bill by more than 15,000%.
Cases before the tax appeals board are governed by a formal, independent administrative proceeding, similar to a trial. The three-person board resolves disputes between taxpayers and state or local taxing authorities. Hearings involve witnesses, evidence and formal rules of procedure.
Bossier officials did not respond to The Center Square’s request for comment.
At previous council meetings, those officials said that service charges were not enough to cover the costs of various sanitation services. Bossier implemented a 2% rate increase last year, but the city is still projecting a deficit in the Public Works and Sanitation Enterprise Fund.
Sanitation fees help cover the cost of services like solid waste collection, animal control, herbicide spraying and mosquito control.
The “public works assessment” is a tax, and neither the Louisiana Constitution of 1974 nor any state legislation provides legal authority for Bossier City to assess such taxes, the petition said.
