SLS 13RS-529 ORIGINAL
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Regular Session, 2013
SENATE RESOLUTION NO. 40
BY SENATOR ALLAIN
LEGISLATIVE AGENCIES. Requests the Louisiana State Law Institute to study feasibility
of authorizing tax lien sales as a replacement or alternative to tax sale certificates.
A RESOLUTION1
To urge and request the Louisiana State Law Institute to study the feasibility of authorizing2
tax lien sales as a replacement or alternative to tax sale certificates.3
WHEREAS, the failure to pay taxes due upon real estate may result in certain legal4
actions being taken by a taxing authority to collect real property taxes owed; and5
WHEREAS, in most states such actions include: (1) the taxing authority may sell a6
tax lien to a person for the amount of taxes owed, with the delinquent taxpayer having a7
specified time period in which to pay their tax bill and extinguish the lien; or (2) the taxing8
authority may sell a tax deed to a person which makes such person the owner of the property,9
and the delinquent taxpayer has no redemptive period in which to reacquire the property; or10
(3) as a "hybrid" of the first two actions, the taxing authority may sell a tax deed to a person,11
with the delinquent taxpayer having a statutory time period of redemption in which to pay12
the tax bill and reacquire the property; and 13
WHEREAS, along with states such as Connecticut, Georgia, Texas, and Rhode14
Island, Louisiana is considered to be within the third category above as a "hybrid" state, as15
Article 7, Section 25, of the Louisiana Constitution and related laws authorize the sale of real16
estate for nonpayment of real property taxes with a right of redemption, generally for three17
years after the date of recordation of the tax sale; and18 SR NO. 40
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WHEREAS, the majority of other states appear to utilize either tax lien sales or tax1
deed sales without right of redemption to recover tax amounts owed upon real estate; and2
WHEREAS, Louisiana's current system of selling tax deeds with a right of3
redemption, now known as tax sale certificates, has resulted through the years in costly and4
protracted litigation over rights and procedures involved in such sales, including but not5
limited to: constitutional questions of due process in notice, advertising and sale processes;6
issues involving annulment, quiet title, and foreclosures and effects upon mortgages, seizing7
creditors and subrogation; tax sales by municipalities and adjudications to political8
subdivisions and post-adjudication sales; issues involving blighted, abandoned, and vacant9
property; liability issues; and redemption processes and effects, including effects of10
adjudication upon redemption; and11
WHEREAS, the complex legal questions and litigation arising from these issues have12
necessitated numerous revisions to laws concerning tax sale certificates, and have increased13
public and private uncertainty regarding the efficacy and fairness of such system as14
providing a practical and reasonable way of collecting tax amounts owed; and15
WHEREAS, to reduce litigation and promote fair and efficient means of collecting16
tax amounts owed, the Louisiana State Law Institute should study the present "hybrid"17
system in Louisiana and the feasibility of tax lien sales as a replacement or alternative to the18
current "hybrid" system of relying upon tax sale certificates; and19
WHEREAS, such study should include any recommended revisions to the state20
constitution and laws as may be necessary in the form of specific proposed legislation.21
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana22
does hereby urge and request the Louisiana State Law Institute to study the feasibility of23
authorizing tax lien sales as a replacement or alternative to tax sale certificates.24
BE IT FURTHER RESOLVED that the Louisiana State Law Institute shall report25
to the Senate regarding the study no later than February 1, 2014, and provide its findings to26
date, including any recommendations regarding specific proposed legislation.27
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the28
director of the Louisiana State Law Institute.29
30 SR NO. 40
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry G. Jones.
DIGEST
Allain SR No. 40
Requests the Louisiana State Law Institute to study the feasibility of authorizing tax lien
sales as a replacement or alternative to tax sale certificates.