Louisiana Senate Bill SB398

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Constitutional amendment to provide an alternative bidding procedure on property at a tax sale. (2/3-CA13s1(A)) (OR SEE FISC NOTE LF EX)

Impact

If enacted, SB398 would impact the existing regulations governing ad valorem property tax sales in Louisiana. The amendment would provide tax collectors with more flexibility, allowing them to choose between traditional sales methods and the new bidding down approach. Proponents argue this could lead to increased participation in tax sales and provide relief for property owners who might struggle with the five percent penalty after redemption. The change is also expected to influence the behavior of bidders at these sales, with the potential for more competitive offers that could benefit the state financially.

Summary

Senate Bill 398 proposes a constitutional amendment to amend Article VII, Section 25 of the Louisiana Constitution, specifically focusing on the process of bidding at tax sales. The key change introduced by this bill authorizes tax collectors to allow bidders to bid down the five percent redemption penalty on properties sold at tax sales. This alternative bidding method aims to streamline the tax sale process and potentially result in better outcomes for both bidders and property owners by altering the dynamics of property acquisition during tax sales.

Sentiment

The sentiment surrounding SB398 appears relatively supportive among those advocating for reform in tax sale protocols. Supporters, including some lawmakers and tax policy reform advocates, view the amendment as a progressive step towards enhancing fairness in the tax sale process. Conversely, some skeptics worry about the implications of allowing bidders to reduce penalties, fearing it could favor larger investors or companies over individual property owners.

Contention

Several notable points of contention arise from the proposed amendment. Critics argue that changing the bidding procedure could complicate tax sales and potentially disadvantage smaller bidders who may not have the financial ability to compete with larger bidders. Additionally, there are concerns that this new method might undermine the intended deterrent effect of the redemption penalty, which is designed to encourage timely tax payments. The upcoming public vote on the amendment will ultimately determine whether these concerns are outweighed by the expected benefits of increased bidding flexibility.