HLS 10RS-1394 REENGROSSED
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are additions.
Regular Session, 2010
HOUSE BILL NO. 481
BY REPRESENTATIVE ROY
TAX/AD VALOREM TAX: Authorizes sheriffs and ex officio tax collectors to employ an
agency to assist in the collection of delinquent ad valorem taxes and obligations and
provides for the payment of such services on a fee basis
AN ACT1
To amend and reenact R.S. 33:1423.1(B), (C), and (D), relative to collection of certain taxes2
and other obligations by sheriffs and ex officio tax collectors; to authorize sheriffs3
and ex officio tax collectors to employ certain parties to aid in the collection of4
certain delinquent taxes and obligations; to provide for the payment for collection5
services on a fee basis; to provide for the amount and payment of the fee; to provide6
relative to requirements for employing certain parties to aid in the collection of7
certain delinquent taxes and obligations; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 33:1423.1(B), (C), and (D) are hereby amended and reenacted to read10
as follows: 11
ยง1423.1. Collection and disposition of bonds, fines, fees, licenses, taxes; acceptance12
of credit card or electronic check payment; expenses of collection borne pro13
rata by affected tax recipient bodies14
* * *15
B. In addition to any other authority provided by law, sheriffs and ex officio16
tax collectors of the various parishes, including the chief administrative officer for17
the city of New Orleans may employ private counsel attorney or an agency to assist18
in the collection of any due delinquent ad valorem taxes, any penalties or interest19 HLS 10RS-1394 REENGROSSED
HB NO. 481
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thereon, and any other payment which may be legally collected by a sheriff or tax1
collector or director of finance for the city of New Orleans.2
C. The sheriff or ex officio tax collector or director of finance for the city of3
New Orleans shall may enter into a contract with such private attorney or agency.4
which shall provide the hourly rate of payment for services. The hourly rate shall not5
exceed the attorney general's fee schedule The contract shall include the method of6
compensation to be paid, which shall be either by an hourly rate for services or a7
specific fee. The hourly rate shall not exceed the attorney general's fee schedule. If8
the method of compensation is a fee, it shall not exceed ten percent of the amount9
collected, which percentage shall be calculated on the total amount collected10
inclusive of any monies due as a result of a fine, bond, tax, license fee, or any other11
payment to be collected. The compensation due to the private attorney or agency12
shall be payable by the taxpayer to the tax recipient body. The sheriff or ex officio13
tax collector or director of finance for the city of New Orleans shall obtain approval14
of the hourly rate or fee to be paid the private attorney or agency by the tax recipient15
bodies, which are owed in the aggregate, at least seventy-five percent of the revenues16
to be collected prior to contracting with the attorney or agency. The sheriff or ex17
officio tax collector or chief administrative officer shall give advance notice to the18
tax recipient bodies prior to employing counsel an attorney or agency and shall19
provide an estimate of anticipated expenses. The affected tax recipient bodies shall20
each contribute its pro rata or equitable share of the fees and expenses of the attorney21
or agency. The sheriff or ex officio tax collector or director of finance for the city22
of New Orleans shall furnish an itemized expense voucher to all affected tax23
recipient bodies, which shall be due and payable upon receipt by the tax recipient24
body.25
D. If as a result of any judgment or settlement, monies attributable to26
attorney or agency fees and expenses are paid to the sheriff or ex officio tax collector27
or director of finance for the city of New Orleans in an amount in excess of the28
amount owed to the attorney or agency under contract, the sheriff or ex officio tax29 HLS 10RS-1394 REENGROSSED
HB NO. 481
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collector or director of finance for the city of New Orleans shall rebate such excess1
to the affected tax recipient bodies based upon their pro rata payments for the cost2
of the attorney or agency.3
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Roy HB No. 481
Abstract: Authorizes sheriffs and ex officio tax collectors to employ an agency to assist in
the collection of delinquent ad valorem taxes and obligations and authorizes the
payment for collection services on a fee basis as well as an hourly rate.
Present law authorizes sheriffs and ex officio tax collectors to employ private counsel to
assist in the collection of delinquent ad valorem taxes, penalties or interest, and any other
payment which may be legally collected by a sheriff or tax collector.
Present law requires the sheriff or tax collector to enter into a contract with a private attorney
for the collection of delinquent taxes and obligations which shall provide the hourly rate of
payment for services which shall not exceed the attorney general's fee schedule for contract
counsel.
Proposed law retains present law but adds the authority for sheriffs and ex officio tax
collectors to employ an agency to assist in the collection of delinquent ad valorem taxes and
obligations. Proposed law changes present law to permit a sheriff or ex officio tax collector
to enter into a contract with an attorney or agency relative to hourly rate of pay or fees rather
than requiring them to do so.
Proposed law further provides that the contract may provide for a fee not to exceed 10% of
the amount collected for such services, inclusive of any monies due as a result of a fine,
bond, tax, license fee, or any other payment to be collected. Further provides that the
compensation due to the private attorney or agency shall be payable by the tax payer to the
tax recipient body.
Present law requires the sheriff or ex officio tax collector to obtain approval of the hourly
rate to be paid the attorney by the tax recipient bodies, which are owed in the aggregate, at
least 75% of the revenues to be collected prior to contracting with the attorney. The sheriff
or ex officio tax collector shall give notice to the tax recipient bodies prior to employing an
attorney and shall provide an estimate of anticipated expenses. Requires affected tax
recipient bodies to contribute their pro rata or equitable share of the fees and expenses of the
attorney.
Proposed law retains present law but clarifies that the provisions of present law also apply
to employment of agencies as well as attorneys, and fees paid for collection services as well
as payment by hourly rate.
Proposed law provides that if as a result of any judgment or settlement, monies attributable
to attorney fees and expenses are paid to the sheriff or ex officio tax collector in an amount
in excess of the amount owed to the attorney under contract, the sheriff or ex officio tax
collector shall rebate such excess to the affected tax recipient bodies based upon their pro
rata payments for the cost of the attorney. HLS 10RS-1394 REENGROSSED
HB NO. 481
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are additions.
Proposed law retains present law but clarifies that the provisions of present law also apply
to excess fees of an agency.
(Amends R.S. 33:1423.1(B), (C), and (D))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Changed from mandatory to discretionary, the authority of a sheriff or ex officio
tax collector to enter into a contract with an attorney or agency to assist in the
collection of delinquent ad valorem taxes.
Summary of Amendments Adopted by House
House Floor Amendments to the engrossed bill.
1. Clarified that the two methods of paying an attorney or agency for collection
services are either by an hourly rate or a specific fee. Hourly rates shall not
exceed the attorney general's fee schedule.
2. Added a limitation to prohibit a fee from exceeding 10% of the amount collected
inclusive of other monies owed for a fine, bond, tax, license fee, or other monies
to be collected.
3. Added provision that compensation paid to an attorney or agency shall be paid
by the taxpayer to the tax recipient body.
4. Clarified that provisions of present law, relative to approval of the hourly rate
paid an attorney, advance notice to tax recipient bodies of the sheriff's intent to
employ an attorney, and requirement that all affected tax recipient bodies
contribute their pro rata share of the fees and expenses also apply to fees and to
the employment of an agency.
5. Clarified that provisions of present law, relative to payments of attorney fees as
a result of a judgement or settlement in excess of the amount owed for collection
services under the contract also apply to excess fees of an agency.