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)]
HB 871 Reengrossed 2024 Regular Session Henry
Abstract: Provides with respect to procedures for the collection of delinquent ad valorem taxes and
statutory impositions, conducting tax auctions, issuance of tax auction certificates, and the
redemption of certain property.
Present constitution and present law require property subject to ad valorem taxes to be listed on the
assessment roles at its assessed value which is a percentage of its fair market value. Requires all
property subject to taxation to be reappraised and valued at intervals of not more than four years.
Present law requires personal property to be reappraised and valued each year and real property to
be reappraised and valued at least every four years.
Present law requires assessors in each parish to prepare the assessment rolls as soon as the
assessment lists have been approved by the parish governing authorities. Further requires each
assessor to complete and file the parish tax roll on or before the Nov. 15
th
each calendar year.
Present law requires an assessor to use reasonable efforts to list on the tax roll all co-owners of
record or if there has been a tax sale to a party other than a political subdivision, the tax sale
purchaser and other owners, to the extent their interests were sold at tax sale. Present law authorizes,
if requested to do so by a tax debtor, an assessor to make a separate assessment for undivided
interests in each parcel.
Proposed law retains present law as it pertains to the deadlines for preparing assessment roles but
changes present law by eliminating the requirement for an assessor, in cases of a tax sale, to use
reasonable efforts to list on the tax roll the tax sale purchaser and other owners, to the extent their
interests were sold at tax sale. Proposed law removes authorization for an assessor, if requested to
do so by a tax debtor, to make a separate assessment for undivided interests in each parcel.
Present law defines a "statutory imposition" as ad valorem taxes and any imposition in addition to
ad valorem taxes that are included on the tax bill sent to the tax debtor.
Present law defines a "tax sale" as the sale or adjudication of tax sale title to property pursuant to
present law (R.S. 47:2154 and 2196) and "tax sale title" as the set of rights acquired by a tax sale
purchaser or, in the case of adjudicated property, on the applicable political subdivision. Further
defines a "tax sale certificate" as the written notice evidencing a tax sale to be filed in accordance
with present law (R.S. 47:2155 and 2196).
Present law defines a "tax sale party" as the tax notice party, the owner of property, including the
owner of record at the time of a tax sale, as shown in the conveyance records of the appropriate parish, and any other person holding an interest, privilege, or other encumbrance on the property,
including a tax sale purchaser.
Proposed law changes present law with respect to "tax sale" and "tax sale certificate" to specify that
those definitions only apply to the sale or adjudication of tax sale title to property and a tax sale
certificate under former provisions of law in favor of terms such "tax auction" and "tax auction
certificate" as defined in proposed law.
Proposed law expands the definition of a "tax sale party" to include a "tax auction party" and the
purchaser of a tax auction certificate at a previous auction or sale, as shown in the mortgage and
conveyance records of the appropriate parish, and other interested parties whose identities and
whereabouts are reasonably ascertainable and whose interest may be terminated by execution of a
judgment.
Present law defines "tax sale property" as property for which tax sale title is sold pursuant to present
law (R.S. 47:2154) and a "tax sale purchaser" as the purchaser of tax sale property or the purchaser's
successors and assigns. Further defines "tax sale title" as the rights acquired by a tax sale purchaser
or, in the case of adjudicated property, of the applicable political subdivision.
Proposed law repeals the definition of "tax sale property" and specifies that a "tax sale purchaser"
is a person or entity who purchased the tax sale property at a tax sale conducted after Jan. 1, 2009,
but before July 1, 2024. Further changes the definition of "tax sale title" to repeal references to
adjudicated property and to limit the rights acquired by a tax sale purchaser pursuant to the law in
effect after Jan. 1 2009, but before July 1, 2024.
Proposed law defines a "delinquent obligation" as the statutory impositions included in a tax bill that
are not paid by the last day to pay ad valorem taxes before they become due, also known as the
"delinquency date", plus interest, costs, and penalties that may accrue in accordance present law and
proposed law.
Proposed law defines a "tax auction" as the sale of a delinquent obligation and a "tax auction
certificate" as the written instrument evidencing the delinquent obligation and lien and privilege
assigned to a tax auction purchaser to be filed in accordance with present law and proposed law.
Further defines a "tax auction purchaser" as the purchaser of the tax auction certificate or his
successors or assigns.
Proposed law makes changes throughout present law, including forms and affidavits, relative to the
assessment and payment of ad valorem property taxes, the filing of tax rolls by assessors, judicial
review of certain assessment actions, tax sales, adjudicated property, from "tax sale" to "tax auction",
from "tax sale title" to "tax auction certificate", and from "taxes" to "statutory impositions" in order
to conform present law to proposed law.
Present law provides that the purpose of present law as it relates to ad valorem taxes and rights of
property owners is to encourage the payment and efficient collection of property taxes, satisfy the
requirements of due process, provide a fair process and statutory price for the redemption of tax sale and adjudicated properties, and encourage the return of tax sale and adjudicated properties to
commerce without unnecessary public expense, through clear procedures that allow interested
persons to carry out title searches and notification procedures necessary to ensure due process in
order to secure merchantable title to those properties.
Proposed law retains present law but adds the following purposes:
(1)Clarify that a tax auction purchaser acquires the delinquent obligation and the lien and
privilege securing it and does not acquire title, possession, or ownership of the tax debtor's
property.
(2)Provide foreclosure procedures to enforce the lien and privilege evidenced by a tax auction
certificate.
(3)Provide procedures to execute the foreclosure judgment to affect the seizure and sale of the
property.
(4)Protect the property owner's right to claim the value of the surplus equity in the property.
(5)Retain traditional procedures governing tax sales, adjudications, and redemptions in this state
to ensure a tax debtor has three years to redeem before the tax auction purchaser can institute
foreclosure litigation minimizing the legal costs passed onto the tax debtor during the
redemptive period; provide a notice of delinquency to the tax debtor prior to the tax auction
and requires post-tax auction to all tax auction parties; require that all tax auction parties are
named in the foreclosure lawsuit to allow for the bringing of nullity claims; and to allow the
parties, regardless of the outcome of any nullity claim, to make a claim to the proceeds
resulting from the foreclosure sale.
Present law prohibits a tax sale from transferring or terminating the property interest of any person
in tax sale property or adjudicated property until that person has been notified and both the
redemptive period and any right held by that person to assert a payment or redemption nullity have
terminated.
Proposed law retains present law but specifies that no tax auction shall terminate the interest of any
person in tax auction property or adjudicated property until that person has been notified and both
the redemptive period and any right held by that person to assert a payment or redemption nullity
have terminated.
Present law provides that a tax sale confers on the tax sale purchaser only tax sale title and does not
confer on the tax sale purchaser the right of possession of tax sale property that is occupied by the
owner and does not confer on the tax sale purchaser the right to make improvements or charge rental
or lease payments to the owner or occupants of the tax sale property. Further provides that if the tax
sale property is not redeemed within the redemptive period, then at the termination of the redemptive
period, tax sale title transfers to its holder, ownership of the tax sale property, free of the ownership
and other interests and claims held by all duly notified persons. Tax sale title is fully transferable and heritable, but any successor of a tax sale title takes it subject to any existing right to redeem the
property, or to assert a nullity, to the extent and for the period of time that the right would have
existed in the absence of the transfer or succession.
Proposed law retains present law but specifies that a tax auction confers on the tax auction
purchaser only a tax auction certificate and does not confer on the tax auction purchaser the right
of possession of tax auction property that is occupied by the owner and does not confer on the tax
auction purchaser the right to charge rental or lease payments to the owner or occupants of the tax
auction property or to make improvements to the property unless specifically authorized by law. If
the tax auction certificate is not redeemed within the redemptive period, then at the termination of
the redemptive period the tax auction purchaser may bring a lawsuit to foreclose on the lien and
privilege acquired at the tax auction. The tax auction certificate is fully transferable and heritable,
but any successor of a tax auction certificate takes it subject to any existing right to redeem the
property, or to assert a nullity, to the extent and for the period of time that the right would have
existed in the absence of the transfer or succession.
Present law provides that a person who acquires ownership of property through a tax sale title takes
the ownership subject to any interests that are not terminated. Other than taking subject to those
interests, the acquiring person's ownership of the tax sale property after termination of the
redemptive period is not affected by any lack of notice to the holders of those interests.
Proposed law repeals present law.
Present law provides that except for acts or omissions that result in redemption or payment nullities,
the provisions of present law concerning notices or procedures required in connection with a tax sale
provide a ground for nullifying the tax sale, the transfer at the end of the redemptive period of the
ownership of property to which tax sale title has been issued or the transfer or termination of any
duly notified person's interest in the tax sale property or the adjudicated property.
Proposed law changes present law by providing that except for acts or omissions that result in
redemption or payment nullities, the provisions of present law concerning notices or procedures
required in connection with a tax auction provide a ground for nullifying the tax auction certificate.
Unless a nullity claim is timely raised in response to a tax auction foreclosure proceeding, the tax
auction purchaser is entitled to a judgment of foreclosure ordering the seizure and sale of the
property, regardless of the sufficiency of the notice provided. Regardless of notice, the tax debtor
has a claim to the surplus sale proceeds generated by the seizure and sale of the property, subject to
the rights of other creditors.
Present law provides that the interest on all ad valorem taxes which are delinquent shall begin on the
first calendar day following the deadline for payment of taxes, and shall bear interest from that date
until paid, at the rate of 1% per month. In the case of an erroneous assessment and adjustment by
the tax commission, the tax debtor has 15 days after the date of receipt of notice of the revised
assessment to pay the adjusted amount without interest penalty. If the address on the tax roll is
incorrect and the tax debtor does not receive a timely notice, the tax collector may extend the
deadline for the debtor to pay the interest penalty for 15 days. Proposed law changes present law to specify that all statutory impositions shall bear interest from
the delinquency date until paid at the rate of 1% per month on a non-compounding basis. In the case
of an erroneous assessment and adjustment by the tax commission, the tax debtor has 15 days after
the date of receipt of notice of the revised assessment to pay the adjusted amount without interest
penalty.
Proposed law provides that failure to pay the total statutory impositions, interest, and costs due shall
cause the delinquent obligation to be offered for sale at a tax auction. Further provides that the
delinquent obligation evidenced by the tax auction certificate shall be secured by a lien and privilege
that shall have priority over all mortgages, liens, and other privileges encumbering the property.
Present law requires tax collectors to use reasonable efforts to send each tax notice party written
notice by U.S. mail of taxes due at the address listed for each tax debtor on each tax roll. Further
provides for the information required in the written notice including a request for the tax debtor to
return the written notice to the tax collector with remittance and a reminder of the date that taxes
become delinquent and that interest will accrue on the taxes after the date the taxes become
delinquent.
Proposed law retains present law but specifies the notice applies to statutory impositions due taxes
at the address listed for each tax debtor on each tax roll. Further specifies that the notice shall be
sent to each tax debtor at the address listed on the tax roll and to each other tax notice party at the
address given in the request for notice. The notice shall inform the tax debtor of the date that
statutory impositions must be paid, that interest will accrue on the statutory impositions at the rate
of 1% per month on a non-compounding basis from the delinquency date, and that a 5% penalty will
be added to the statutory impositions if the statutory impositions remain unpaid and a tax auction
occurs. The tax notice shall also indicate if there was a prior unredeemed tax sale or tax auction in
connection with the immovable property under the tax collector's authority.
Present law prohibits a tax sale after three years from Dec. 31
st
of the year in which ad valorem taxes
were due have passed, except for adjudicated property. However, the prescription to have a tax sale
shall be suspended during the pendency of any suit which prevents the collection of the taxes, and
the time of the suspension shall be excluded from the computation of the three years.
Proposed law changes present law to provide that a tax auction may be conducted with regard to any
delinquent statutory impositions due, but once a tax auction has taken place, the tax collector may
no longer collect or auction any prior delinquent statutory impositions.
Present law authorizes any person who has a claim against a political subdivision for ad valorem
taxes erroneously paid to present the claim to the La. Tax Commission within three years of the date
of the payment, in a form and with documentation. If the claim is made for taxes erroneously paid
on property that would not qualify for a homestead or other exemption, the collector shall note and
record the amount of the refund or repayment owed and is charged with ensuring that the amount
of erroneously paid taxes is credited against future ad valorem tax liability of that property. No
interest shall accrue or be due on any refund or repayment. A political subdivision may use an
alternative procedure for providing refunds of ad valorem taxes erroneously paid if the alternative procedure has been approved by the tax commission.
Proposed law changes present law by specifying that claims for erroneously paid ad valorem taxes
applies to all statutory impositions and also extends to claims for ad valorem taxes erroneously paid
on property when an improvement is erroneously assessed on a property with no improvement.
Proposed law requires a tax collector to issue a refund to the tax auction purchaser if the tax auction
purchaser paid he erroneous amount.
Present law requires a tax collector to cancel a tax sale if it is determined, within the redemptive
period, that the statutory impositions on property subject to a tax sale were paid prior to the tax sale
or that the tax sale was conducted in violation of a stay under federal bankruptcy law. If a tax sale
is cancelled, the tax collector shall reimburse the tax sale purchaser the bid price and shall record the
cancellation with the recorder of conveyances in the parish in which the property is located.
Proposed law changes present law to require a tax collector to cancel a tax auction if it is determined,
within the redemptive period, that the statutory impositions on property subject to the tax auction
were paid prior to the tax auction or that the tax auction was conducted in violation of a stay under
federal bankruptcy law. If a tax auction is cancelled, the collector shall immediately notify the tax
auction purchaser in writing of the cancellation, and shall reimburse the tax auction purchaser the
bid price within 30 days of executing the cancellation instrument. The tax collector is required to
record the cancellation with the recorder of conveyances in the parish in which the property is
located within 15 days of executing the cancellation instrument.
Present law requires the tax collector to send notice by certified mail no later than the first Monday
of Feb. of each year to each tax notice party when the tax debtor has not paid all the statutory
impositions assessed on immovable property. The notice shall inform the person that the statutory
impositions must be paid within 20 days after the sending of the notice or before the tax sale is
scheduled, or the tax sale title to the property will be sold according to law. After the property goes
to tax sale and within 90 days of the expiration of the redemptive period, the tax collector is required
to provide written notice by first class mail to each tax notice party that tax sale title to the property
has been sold at tax sale and that after the expiration of the redemptive period, the property cannot
be redeemed.
Proposed law retains present law as it pertains to the deadline for sending notice to the tax debtor
but changes present law as it relates to the content of the notice to provide that the statutory
impositions on the immovable property must be paid within 20 days after the sending of the notice
or before the tax auction is scheduled, or the tax collector will advertise for sale by public auction
the delinquent obligation and the lien and privilege securing it, and that the collector shall issue in
favor of the winning bidder and record in the mortgage records a tax auction certificate.
Present law provides that if the written notice by certified mail is returned for any reason, the tax
collector is required to demonstrate a reasonable and diligent effort to provide notice of the tax sale
to the tax debtor. To demonstrate a reasonable and diligent effort, the tax collector is required to
attempt to deliver notice of the delinquent taxes and tax sale by first class mail to the last known
address of the debtor and take at least three additional steps to notify the tax debtor such as contacting the tax assessor of the parish in which the property is located, examine mortgage or
conveyance records of the parish where the property is located, or post the notice at the property.
Proposed law changes present law by providing that if the written notice by certified mail is returned
for any reason, the tax collector shall resend the notice by first class mail to the property address,
addressed to "occupant" and shall take additional steps to notify the tax debtor of the delinquent
statutory impositions and pending auction. Proposed law reduces the additional steps that the tax
collector must take to notify the tax debtor from three to two and adds as an additional step to the
options contained in present law the option of the tax collector to review the local telephone
directory or internet for the tax debtor.
Present law requires the notice of the tax sale to be sent by certified mail or commercial courier to
all addresses discovered through the steps provided for in present law. The tax collector is
authorized to recover all reasonable and customary costs actually incurred in executing the notice.
Proposed law changes present law by requiring the notice of the tax auction to be sent by first class
mail to all addresses discovered through the steps provided for in present law that the tax collector
reasonably believes may be valid addresses for the tax debtor. Proposed law retains present law as
it relates to the tax collector recovering all reasonable and customary costs actually incurred in
executing the notice.
Present law provides that failure of the debtor to receive actual notice of the tax sale shall not affect
the validity of the tax sale when the tax collector demonstrates a reasonable and diligent effort to
provide notice of the tax sale. If the debtor is deceased, the notice of tax sale and the reasonable and
diligent effort to provide notice of the tax sale shall be sufficient if sent to the succession
representative, if applicable, or to a curator as provided by law.
Proposed law repeals present law.
Present law provides that no later than the first Monday of March each year, or as soon thereafter as
possible, the tax collector shall search the mortgage and conveyance records of tax sale eligible
property to identify tax sale parties. Further requires that prior to the tax sale, the tax collector shall
send a written notice by certified mail, return receipt requested, to each identified tax sale party. The
notice shall advise the person that it is required that the statutory impositions on the immovable
property be paid within 20 days after sending of the notice or the tax sale title to the property will
be sold according to law.
Proposed law repeals present law.
Present law prohibits a tax sale from being set aside or annulled for any error in a description or
measurement of the assessed property in the name of the tax debtor, provided the property can be
reasonably identified, Further provides that when advertisements are required to be made for the sale
of property for unpaid taxes that the advertisements shall only be in English.
Proposed law retains present law regarding the setting aside of a tax sale but repeals the requirement that advertisements for tax sales shall only be in English. Proposed law prohibits a judgment
annulling a tax sale or tax auction from taking effect until the price and all statutory impositions and
costs are paid; however, this shall not apply to sales annulled because the taxes were paid prior to
the date of the sale.
Proposed law provides that failure of the tax collector to provide notice or to properly advertise the
tax auction as required by present law and proposed law shall not be a basis to nullify the tax auction.
Present law requires the tax collector to shall seize, advertise, and sell tax sale title to the property
on or before May 1
st
of the year following the year in which the taxes were assessed, or as soon
thereafter as possible. Further requires the tax sale to be conducted on any weekday within the legal
hours for judicial sales, with bidding opening not earlier than 8:00 a.m. and closing no later than 8:00
p.m. If a tax sale is conducted by using an online or electronic bidding process that is conducted
over the course of multiple days, bids may be placed on any day at any time on any sale property
upon which bidding has not closed, provided that all sales close on a weekday within the legal hours
for sale. The price shall be for the amount of statutory impositions due on the property, costs, and
interest.
Proposed law retains present law relative to the timing and limitations of conducting tax auctions
but changes present law by removing authority for the tax collector to seize the property subject to
the delinquent obligation for statutory impositions and the lien and privilege securing. Proposed law
further changes present law to provide that the tax auction certificate price shall be for the amount
of statutory impositions due on the property, together with any applicable costs and interest. The
price may include any prior delinquent statutory impositions but once a tax sale or tax auction has
taken place, the tax collector may no longer collect prior years of delinquent statutory impositions.
Once a tax auction takes place the prior delinquent statutory impositions may not be collected
through subsequent tax bills or through a subsequent tax auction.
Proposed law provides that the first auction participant to place the bid in time wins the bid and
requires the tax collector to file a tax auction certificate in favor of the winning bidder in the
mortgage records of the parish in which the property is situated and to deliver a recorded copy of the
tax auction certificate to the winning bidder. In the case of online sales, bids shall be placed by
individuals and shall not be automated and placed by an automated computer program. The tax
auction certificate shall be prima facie evidence of the validity of the delinquent obligation, the lien
and privilege, the auction, and the assignment to the winning bidder.
Proposed law requires the amount owed to the tax auction purchaser to be secured by a lien and
privilege on the immovable property described in the tax auction certificate. Further provides that
the lien and privilege shall have priority over all mortgages, liens, and privileges encumbering the
property including prior tax auction certificates. When parish and city tax auction certificates are
issued on the same property in the same year, they shall be designated parallel certificates, and
neither shall have legal priority over the other.
Present law requires a tax collector to authenticate and file, in person or by deputy, in the political
subdivision's name, a tax sale certificate to purchasers of any property to which tax sale title was sold for taxes. The collector is required to describe the property, state the amount of the taxes, interest,
penalties, and costs and the bid made for the property, and the payment made to him, and shall
conclude the sale with the statement that the property is redeemable at any time during the applicable
redemptive period beginning on the day the tax sale certificate is filed with the recorder of
conveyances in the parish in which the property is located.
Proposed law changes present law by requiring the tax collector to authenticate and file, in person
or by deputy, in the political subdivision's name, a tax auction certificate to the winning bidder in
which the tax collector shall describe the property, state the amount of the winning bid and amounts
attributable to statutory impositions, interest, penalties, and costs, and the payment made to him.
The tax collector is further required to deliver a tax auction certificate to the winning bidder and
shall conclude the auction with the statement that the statutory impositions, together with interest
at the rate set forth in present law, penalties, and costs may be paid at any time during the applicable
redemptive period beginning on the day when the tax auction certificate is filed with the recorder
of mortgages in the parish in which the property is located.
Present law provides that the tax sale certificate contemplated in present law is considered a tax deed
for purposes of present constitution.
Proposed law repeals present law.
Proposed law provides that a tax auction certificate shall prescribe within seven years from the date
of recordation in the parish mortgage records unless a proceeding to foreclose the tax auction
certificate is filed or unless otherwise interrupted under law. The filing of the foreclosure suit shall
interrupt and continue to suspend the prescriptive period as long as a foreclosure suit is not deemed
abandoned under present law. Proposed law requires prescription to be suspended with the filing
of a bankruptcy suit until the debtor is discharged or the automatic stay is lifted. After the stay is
lifted, the tax auction purchaser shall have 90 days or the amount of time remaining pursuant to the
provisions of present law, whichever is greater, to file a proceeding to foreclose the tax auction
certificate. The prescriptive period may be interrupted or suspended when otherwise authorized by
law.
Proposed law provides that if no foreclosure suit has been filed within seven years of the tax auction
certificate being recorded or the foreclosure suit is deemed abandoned, the tax debtor, or anyone with
a recorded ownership interest, lien, mortgage, encumbrance, or any other interest in the property may
request the clerk of court to cancel the tax auction certificate. Cancellation is not authorized if the
prescriptive period is interrupted or suspended.
Present law provides that within the applicable redemptive period, the tax sale purchaser may send
a written notice to any or all tax sale parties notifying the parties of the sale. Further provides for
the form and content of the notice. Present law requires the notice to inform tax sale parties that
failure to redeem the property prior to the expiration of the applicable redemptive period will
terminate the right to redeem the property, and the purchaser will have the right to seek confirmation
of the tax title and take actual possession of the property. Proposed law retains present law as it relates to the form and content of the notice; however,
proposed law specifically provides that the notice shall inform the tax auction parties that the failure
to redeem the property prior to the expiration of the applicable redemptive period will terminate the
right to redeem the property, and the purchaser will have the right to obtain judgment foreclosing
on the lien and privilege evidenced by the tax auction certificate and ordering the seizure and sale
of the property to satisfy the debt. Proposed law also provides that the written notice to all tax
auction parties notifying them of the tax auction is mandatory rather than permissive and must be
sent within six months prior to the redemptive period expiring.
Proposed law adds a requirement to the notice form indicating that unless the property owner takes
some action, the property may be lost and that the total amount due to redeem the debt will increase
monthly as a result of the interest and penalties assessed on the delinquent debt.
Proposed law provides that when notices are sent pursuant to present law and proposed law, the tax
auction purchaser shall submit an affidavit of costs and fees to the tax collector attesting to the costs
incurred including title research fees, postage, and administrative fees, which shall not exceed $500,
and the tax collector shall include the sworn costs in the redemption price. If not timely redeemed,
the costs incurred by the tax auction purchaser in providing notice shall be owed and reimbursable
to the tax auction purchaser in the foreclosure judgment.
Present law provides that when necessary to comply with an order enforcing property standards,
when presented with the order and a certified copy of a tax sale certificate, a judge shall grant an ex
parte order of seizure and possession, commanding the sheriff to seize the property and place the
purchaser in actual possession. A purchaser may take actual possession without the order with the
consent or acquiescence of the tax debtor, provided no force or violence is used. The purchaser
shall have a privilege on the property for the costs of complying with the order of the political
subdivision. To preserve this privilege, the purchaser shall file the writ of possession with the
recorder of mortgages of the parish in which the property is located within 15 days after its issuance.
The effect of recordation shall cease one year after the date of filing the writ of possession, unless
a statement of privilege referencing the writ and detailing the costs is filed with the recorder of
mortgages before the expiration of one year from the date of filing the writ.
Proposed law changes present law to provide that when necessary to comply with a notice or order
enforcing property standards, when presented the notice or order and a certified copy of a tax auction
certificate to a court, the court shall grant an ex parte order of seizure and possession, commanding
the sheriff to seize the property and place the tax auction purchaser in actual possession. Further
provides that when the property is vacant or abandoned and the tax auction purchaser is in possession
of a notice or order advising of property standards violations, the tax auction purchaser may take
peaceful possession of the property without a court order and without the consent or acquiescence
of the tax debtor, provided no force or violence is used.
Proposed law further provides that the tax auction purchaser shall not be permitted to alter or repair
the property beyond the scope of the notice or order issued by the political subdivision. If the tax
debtor contacts the tax auction purchaser about regaining possession of the property, the tax auction
purchaser shall relinquish possession to the tax debtor within 30 days of receiving written demand from the tax debtor.
Proposed law provides that the tax auction purchaser shall have a privilege on the property for the
costs of complying with the notice or order regardless of whether possession is obtained through
court order or peaceful possession.
Proposed law provides that to preserve the privilege, the tax auction purchaser shall record an
Affidavit of Costs to Preserve with the recorder of mortgages of the parish in which the property is
located. A copy of the property standards notice or order shall be filed as an exhibit to the affidavit.
An amended affidavit may be recorded on an annual basis to include additional costs incurred in
preserving the property.
Proposed law provides that at the time of redemption, the tax collector shall contact the tax auction
purchaser to request an updated affidavit. If a redemption occurs before the tax auction purchaser
files the initial Affidavit of Costs to Preserve, the tax auction purchaser shall subsequently record
the affidavit, and the tax debtor shall be required to reimburse the tax auction purchaser the costs
outlined in the affidavit.
Proposed law requires, upon request, for a tax collector to inform the tax auction purchaser of any
person or entity requesting notice in accordance with the provisions of present law.
Proposed law provides that after a tax auction and issuance of a tax auction certificate, all subsequent
statutory impositions on the property shall continue to be assessed to and paid by the tax debtor. If
the statutory impositions remain unpaid by the tax debtor by the delinquency date, the tax auction
purchaser may pay the statutory impositions. A tax auction purchaser who pays statutory impositions
on behalf of a tax debtor shall be entitled to collect interest on the amount paid at the rate of 1% per
month on a non-compounding basis and a 5% penalty. If a subsequent statutory imposition is paid
by the tax auction purchaser after the tax auction certificate is redeemed, the tax collector shall issue
a refund of the subsequent statutory imposition within thirty days of written demand being made by
the tax auction purchaser.
Proposed law requires, upon request, a tax collector to mail a printed copy of the tax bill to the tax
auction purchaser at the time the bill is mailed to the tax debtor unless the bills are available online.
Present law provides that all redemptive periods provided in present constitution shall be peremptive.
Proposed law changes present law to provide that all redemptive periods provided for in present law
shall be peremptive and that the redemptive period for tax auctions expire three years from the date
of recordation of the tax auction certificate in the parish mortgage records.
Present law requires redemptions to be made through the tax collector of the appropriate political
subdivision or the state land office. Payment shall include all statutory impositions accruing before
the date of payment with 5% penalty and simple interest accruing at 1% per month, as well as all
other sums required to be paid. The tax collector is required to promptly remit the redemption
payment to the tax sale purchaser and the register shall promptly deposit the redemption payment in the state treasury.
Proposed law changes present law as it relates to required payments to require the redemption
payment to include the amount paid at auction, any penalty and interest accruing on the statutory
impositions, all costs and fees incurred by the tax auction purchaser in sending notice of the right
to redeem the tax auction certificate, and all other sums required to be paid.
Proposed law requires a tax collector to make a reasonable effort to notify the redeeming party of
the existence of any additional tax auction certificates within the tax collector's authority that remain
outstanding on the property. If the redemptive period has expired, the tax collector may not accept
any redemption payments.
Present law requires payment to also include the actual costs incurred by the political subdivision
for preparation and filing of redemption certificates, the cost of mail, notice, publication of notice,
personal service of notice, appraisal, and costs associated with the determination of tax sale parties
and their notification. However, the actual cost of preparation and filing of redemption certificates
shall not exceed $200. The political subdivision may also require the payment of all amounts
accrued under other governmental liens as of the date of payment.
Proposed law retains present law but adds the cost of the tax auction certificate and certificates of
no bid to costs that are included in the payment and excludes costs for appraisals from being
included in the payment. Proposed law additionally increases the total reimbursable payments from
not to exceed $200 to not to exceed $300 exclusive of filing and recording fees.
Present law requires the collector to issue a redemption certificate in the name of the tax debtor upon
payment of the redemption costs and file the redemption certificate in the appropriate conveyance
records.
Proposed law requires the collector to issue a redemption certificate in the name of the tax debtor
with 30 days of receiving payment of all amounts due and to remit payment to the tax auction
purchaser. Further requires the tax collector to record the redemption certificate in the appropriate
parish's mortgage records.
Present law provides that after expiration of the redemptive period, an acquiring person may institute
an ordinary proceeding against the tax sale parties whose interests the petitioner seeks to terminate.
The petition shall contain information such as a description of the property, the time and place of the
sale, the name of the officer who made the sale, the page and record book and date of filing of the
tax sale certificate, and notice that the title and full ownership in the property will be confirmed
unless a proceeding to annul is instituted within six months after the date of service of the petition
and citation. Present law further provides for service of the petition and citation, and in cases when
tax titles have been quieted by prescription of five years, and authority of the petitioner to file a
notice of lis pendens with the recorder of mortgages of the parish in which the property is located.
Proposed law changes present law to provide that after expiration of the three-year redemptive
period, a redemption is no longer available. After the redemptive period expires, unless settlement has been reached, the tax auction purchaser may institute an ordinary proceeding against the tax
auction parties to foreclose on the lien and privilege evidenced by the tax auction certificate. Further
requires the petition to advise that the delinquent obligation and the lien and privilege evidenced by
the tax auction certificate will be confirmed by judgment of the court, which may be executed by
seizure and sale of the property unless a proceeding to annul is instituted within six months after the
date of service of the petition and citation. If settlement is reached with the tax auction purchaser,
the parties may agree not to proceed with the judicial sale of the property.
Proposed law requires the petition to advise that in addition to the redemption price, the judgment
shall order reimbursement to the tax auction purchaser for all costs incurred pursuant to present law
and proposed law and reasonable attorney's fees. Further requires the petition to provide notice that
the lien held by the tax auction purchaser shall be superior to interests of all other creditors. If
named creditors fail to answer or otherwise appear in the suit within six months after the date of
service of the petition and citation to assert a valid claim to the sale proceeds, their interest in the
property shall be terminated.
Proposed law provides that when there are parallel certificates, the tax auction purchaser filing the
foreclosure suit must name the parallel certificate holder as a party to the suit. Further provides for
process and requirements for the filing of an Affidavit of Statutory Impositions, interest, and penalty
into the record.
Proposed law requires the petition to advise that there will be 18 months from the date of the seizure
and sale to claim any surplus sale proceeds deposited into the registry of the court by the sheriff, after
which the proceeds shall be disbursed to the tax auction purchaser who filed the foreclosure suit.
Further requires judgment to be rendered if no proceeding to annul the tax auction has been instituted
after the lapse of six months after the date of service of petition and citation, judgment shall be
rendered confirming the lien and privilege evidenced by the tax auction certificate.
Proposed law requires the judgment in the foreclosure action to be executed by a writ of seizure and
sale, and the sale shall be scheduled after the suspensive appeals delays for the judgment have
expired. Proposed law establishes rules for the judicial sale executing the foreclosure including rules
related to appraisal and minimum bids, which shall include statutory interest at the rate of 1% per
month on a non-compounding basis. If an extra-judicial settlement is reached, the tax auction
purchaser shall cancel the sale and ask the recorder of mortgages to cancel and release the judgment
ordering judicial sale of the property.
Proposed law requires the proceeds of the sale to be distributed by the sheriff in accordance with the
judgment, and any unclaimed or surplus proceeds shall be deposited into the registry of the court.
Distribution of the judgment amount to the tax auction purchaser shall be made immediately
following the sale, regardless of any dispute that may arise between other parties over allocation of
the surplus sale proceeds. If surplus proceeds are not timely claimed, they shall be disbursed to the
tax auction purchaser provided that six months prior to making the claim, the tax auction purchaser
sends written notice to all parties with a remaining claim to excess proceeds.
Proposed law that failure of the tax collector to provide notice of the delinquency is not a basis to nullify the tax auction certificate.
Present law requires an action to annul a tax sale on grounds of a redemption nullity to be brought
before the earlier of six months after a person is notified using a notice sent between the time that
the redemptive period ends and five years after the date of the recordation of the tax sale certificate
or if a person is notified more than five years after the date of the recordation of the tax sale
certificate, 60 days after the person is notified. Further provides that an action to annul a tax sale on
grounds of a payment nullity shall be brought before the later of five years after the recordation of
the tax sale certificate or, if the person bringing the action was not notified at least 60 days before
the end of that five-year period, then within 60 days after the date that the person was notified.
Proposed law changes present law by requiring an action to annul a tax auction on grounds of a
redemption nullity to be brought before the earlier of six months after a person is served with suit
and citation in a procedure to foreclose a tax auction certificate or if a person is served with the
foreclosure suit and citation more than five years after the date of the recordation of the tax auction
certificate, 60 days after the person is served. Further provides than an action to annul a tax auction
on grounds of a payment nullity shall be brought before the later of five years after the recordation
of the tax auction certificate unless a suit to foreclose on a tax auction certificate has been filed or
if the person is served with the foreclosure suit and citation more than five years after the date of
recordation of the tax auction certificate, 60 days after the date that the person was served.
Proposed law provides that a redemption or payment of a nullity claim is a personal claim that can
only be brought on behalf of oneself and may not be raised on behalf of another tax auction party.
Present law provides that a judgment based on a payment nullity not only reinstates the interest of
the tax debtor, or person claiming ownership through the tax debtor in the property, but also
reinstates all interests in the property otherwise terminated or erased to the extent the interest has not
otherwise terminated pursuant to its terms or by operation of law.
Present law provides that a judgment annulling a tax sale or other transfer to an acquiring person
based on a payment nullity shall not have effect until all statutory impositions for which the sale was
made, all subsequent statutory impositions and all other governmental liens, including interest and
penalties, and 10% per year interest on the statutory impositions are paid. However, these costs are
not required to be paid if proof of payment of the statutory impositions or governmental liens is
declared. A judgment annulling a tax sale or other transfer to an acquiring person based on a
redemption nullity shall not have effect until all statutory impositions forming the basis of the initial
tax sale, all subsequent statutory impositions and all governmental liens, all costs, a 5% penalty and
12% interest per year at a rate of 1% per month on all statutory impositions are paid.
Proposed law retains present law as it pertains to a judgment annulling a tax auction or other transfer
based on a payment nullity but changes present law as it pertains to a judgment annulling a tax sale
or other transfer to an acquiring person based on a redemption nullity by deleting the requirement
that all costs be paid prior to the judgment taking effect and changing the penalty from a 5% penalty
and 12% interest per year at a rate of 1% per month on all statutory impositions to a 5% penalty and
non-compounding interest at a rate of 1% per month on all statutory impositions. Proposed law further requires all amounts to be paid to the tax auction purchaser and within 30 days
of remitting payment, the nullifying party shall file an affidavit with supporting documents
evidencing payment into the suit record proving that full and final payment has been remitted to the
tax auction purchaser. The judgment of nullity shall take effect when the affidavit and supporting
documents are filed.
Present law provides that upon conclusion of a nullity action, the court shall either issue a
preliminary order that the tax sale will be declared a nullity or render judgment dismissing the action
with prejudice which shall be a final judgment for purposes of appeal. The tax sale purchaser shall
be presumed to be a good faith possessor of the property. Within 15 days after rendering a
judgment, the party claiming costs shall submit proof of costs by affidavit or other form of evidence.
Further provides for procedure and deadlines for the court to hear a contest on costs.
Proposed law changes present law by providing that if grounds for a nullity are proven, the court
shall issue an interim judgment that the tax auction is declared a nullity. The interim judgment shall
be a final judgment for purposes of appeal. However, if grounds for a nullity are not proven, the
court shall dismiss the nullity action with prejudice. For purposes of cost reimbursement, the tax
auction purchaser shall be presumed to be a good faith possessor of the property. Proposed law
further provides for procedure and deadlines for the court to hear a contest on costs which includes
a party contesting the costs to file a request for a rule to show cause within 15 days after the filing
an affidavit of costs into the record and a requirement that the hearing or rule to show cause on the
contest of costs shall be heard within 45 days after the filing of the affidavit of costs.
Present law provides forms for tax collectors to use to notify tax notice parties of taxes due, forms
for the postponement of taxes due to calamities, publication and advertisement of to debtors of the
delinquency, tax sale certificates, post-sale notice, redemption certificates, and notice of
delinquencies and tax sales.
Proposed law adds changes to the forms to conform with the provisions of proposed law.
Present law (R.S. 47:2271-2273) provides, in addition to all other procedures, after the expiration
of the applicable redemptive period, for an acquiring person to protect himself from eviction from
the tax sale property to which ownership or tax sale title has been transferred by filing a petition for
monition in the district court of the parish in which the property is located. Present law provides for
requirements that the petition for monition must contain and documents that must be attached to the
monition petition. Present law requires the clerk, on application of the buyer or donee, to grant
monition in the name of the state and to affix the seal of the court to the petition.
Proposed law repeals present law.
Present law (R.S. 47:2274) authorizes a petitioner to file a notice of lis pendens of the monition
proceeding with the recorder of mortgages of the parish in which the property is located. Further
provides that a transfer, mortgage, lien, privilege, or other encumbrance filed after the filing of the
notice of lis pendens shall not affect the property. Proposed law repeals present law.
Present law (R.S. 47:2275-2277) provides for written notice and publication requirements that a
petitioner filing for monition must comply in order to give all tax sale parties notice that the
petitioner intends to terminate their interest in the property. Present law requires the petitioner for
monition to file an affidavit stating how the tax sale parties whose interests the petitioner intends to
be terminated were identified, how the addresses of each tax sale party were obtained, how the notice
was sent, the results of sending the written notice, and the dates of publication. Further provides for
deadlines for parties to show cause why grounds exist for a nullity.
Present law includes forms for the notice, publication of the notice, and the affidavit.
Proposed law repeals present law.
Present law (R.S. 47:2278-2280) authorizes the party obtaining the monition to apply to the court
which rendered the monition to confirm the title to and full ownership in the property and confirm
the sale after expiration of the applicable time periods set forth in present law. Further provides that
the filing of the affidavit with the recorder of mortgages of the parish in which the property is located
shall operate as a cancellation or termination of all statutory impositions due to the donor political
subdivision prior to the date of the original acquisition by a tax sale purchaser of adjudicated
property, all statutory impositions and all other interests, liens, and encumbrances arising prior to
the original sale of adjudicated property to the acquiring person, and all interests, liens, and other
encumbrances recorded against the property and listed in the affidavit.
Proposed law provides that when no opposition to the confirmation of the sale is made, the costs of
the proceeding shall be paid by the party who prays for the monition. However, the petitioner shall
be liable for and indemnify the recorder of mortgages and and any other person relying on the
cancellation, termination, or erasure by affidavit for any damages that suffer if the recorded affidavit
contains materially false or incorrect statements that cause the recorder to incorrectly cancel,
terminate, or erase any interest as provided in the affidavit.
Proposed law repeals present law.
(Amends R.S. 47:1998(A)(1)(b)(ii) and (2), (B)(3), (D), and (F), 2121, 2122, 2126, 2127, 2130,
2131, 2132(A)(1) and (C), 2133, 2134, 2151-2156, 2158, 2158.1, 2159, 2160-2163, 2241- 2245,
2266, 2286, 2287, 2289, 2290, and 2291; Adds R.S. 47:2266.1; Repeals R.S. 47:2128, 2157, and
2271-2280)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Change the applicability of proposed law from July 1, 2024 to Jan. 1, 2025. 2. Change the definition of "owner" to include a person who holds a usufruct interest in
property and specifies that the ownership interest as shown in the conveyance and
mortgage records of the appropriate parish.
3. Reduce the interest rate imposed on delinquent statutory impositions in proposed law
from 1.25% per month to 1% per month and reduces the penalty from 6% per month to
5% per month.
4. Change the requirement that tax collectors advertise for auction the consolidated
delinquent tax list under one form from two times within 30 days in the parish's official
journal to an advertisement in the parish's official journal.
5. Limit a judgment annulling a tax sale or tax auction from taking effect until the price and
all statutory impositions and costs are paid but excepts sales annulled because the taxes
were paid prior to the date of the sale from this limitation.
6. Remove limitation that advertisements shall only be made in English.
7. Add requirement that bids from online sales be placed by individuals and prohibit bids
from being placed by automated computer programs.
8. Change the notice a tax auction purchaser sends within six months of the expiration of
the redemptive period to all tax auction parties from a permissive notice to a mandatory
notice.
9. Specify that a tax collector is required to mail a hard copy of the tax bill to a tax auction
purchaser upon request unless the tax bill is available online.
10.Remove provision that settlement with a tax auction purchaser may be made to stop the
foreclosure and sale of the property.
11.Change interest rate reference in provisions related to judicial sale of property from legal
interest to statutory interest which is 1% per month on a non-compounding basis as of
the date of the sale.
12.Add requirement that surplus sale proceeds not timely claimed shall be disbursed to the
tax auction purchaser if six months prior to making a claim, the tax auction purchaser
sends written notice to all parties with a remaining claim to excess proceeds.
13.Make technical amendments.
The House Floor Amendments to the engrossed bill:
1. Make technical changes. 2. Require a tax collector to mail a printed copy, rather than a hard copy, of the tax bill to
a tax auction purchaser upon request unless the tax bill is available online.