The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Danielle Clapinski.
DIGEST
SB 393 Original 2024 Regular Session Miller
Present law uses the term "taxes" throughout Chapter 5 of Subtitle III of Title 47 of the Louisiana
Revised Statutes of 1950.
Proposed law amends present law and replaces "taxes" with "statutory impositions" throughout
present law except when specifically referring to ad valorem taxes. "Statutory impositions" is defined
in present law to include ad valorem taxes and other charges included on a property tax bill.
Present law provides that the purpose of present law includes the following:
(1)Encourage the payment and efficient collection of property taxes.
(2)Satisfy the requirements of due process.
(3)Provide a fair process and statutory price for the redemption of tax sales and adjudicated
property.
Proposed law repeals present law.
Present law defines the terms "acquiring person", "adjudicated property", "duly notified",
"governmental lien", "send", "tax sale", "tax sale party", "tax sale property", "tax sale purchaser" and
"tax sale title".
Proposed law repeals these definitions from present law.
Proposed law defines"delinquency obligation" as statutory impositions included in the tax bill that
are not paid by the due date, plus interest, costs, and penalties that may accrue.
Proposed law defines "forbidden purchase nullity"as a nullity of an action conducted in violation of
proposed law.
Proposed law defines "premium"as the amount paid at tax lien auction in excess of the statutory
impositions, interest, penalty, and costs.
Proposed law defines "redemption price" as the amount calculated pursuant to proposed law that is
required to be paid in order to redeem a tax lien certificate.
Proposed law defines "tax lien auction" as the sale of a delinquent obligation. Proposed law defines "tax lien certificate" as the written instrument evidencing the delinquent
obligation and the lien and privilege securing it that identifies the holder thereof.
Present law provides that delinquent ad valorem property taxes bear interest at a rate of 1% per
month.
Proposed law clarifies that the 1% interest per month is on a non-compounding basis and allows for
the imposition of a 5% penalty if statutory impositions remain unpaid after 90 days. Further provides
that failure to pay statutory impositions allows the tax lien to be sold at tax lien auction and that a
tax lien has priority over all mortgages, liens, privileges, and security interests.
Present law requires the tax collector to mail property tax bills to the tax debtor and each tax notice
party. If the property is sold at tax sale, future tax bills are required to be sent to the tax sale
purchaser.
Proposed law retains present law requirement that property tax bills be mailed to the tax debtor and
each tax notice party. Further requires the tax bill to inform tax debtor if there is any unredeemed
tax sale certificate or tax lien certificate.
Present law requires the tax collector to send written notice to each tax notice party when the tax
debtor has not paid all the statutory impositions that have been assessed on immovable property. The
notice informs recipients that if the statutory impositions are not paid within 20 days of sending of
the notice, the tax sale title to the property will be sold.
Proposed law retains present law notice requirement to each tax notice party. Further requires the
tax collector to include that assessment constitutes a lien and that if not paid within 20 days that the
lien will either be retained by tax collector or sold at auction.
Present law requires the tax collector to seize, advertise, and sell tax sale title to property upon which
delinquent taxes are due.
Proposed law repeals present law and requires the tax collector to advertise for sale by public auction
the delinquent obligation for statutory impositions and the lien securing it.
Present law requires that the tax collector resend notice by first class mail to the tax debtor when the
certified mail is returned. Further requires the tax collector to take additional steps to notify
including:
(1)Review the local telephone directory or internet for the tax debtor.
(2)Contact the assessor for potential updated addresses or other properties assessed in the tax
debtor's name.
(3)Examine the mortgage and conveyance records of the parish where the property is located
to determine whether there are any other transactions pertaining to the tax debtor. (4)Attempt personal or domiciliary service of the tax bill.
(5)Post a notice of the tax lien auction at the property.
(6)Perform a computer search of digitized records and data bases of the clerk of court or
sheriff's office for addresses of other properties that may be assessed in the tax debtor's name.
Proposed law retains present law and requires that notice be re-sent to the occupant of the property
as well.
Present law provides for the adjudication of property, including adjudication to political
subdivisions, minimum bid prices, pre-bidding procedures, donations of adjudicated property, and
the notice, form, affidavit, and disposition of proceeds from adjudicated property.
Proposed law repeals present law and provides procedures for when the tax collector elects to retain
the tax lien and procedures for when the tax collector elects to sell the tax lien at auction.
Proposed law provides that a tax lien certificate prescribes five years after recordation unless an
action to enforce tax lien is filed. Provides that if no action filed within five years, recorder of
mortgages shall cancel the inscription upon request of an interested party. Further provides that the
prescription period is suspended by filing of bankruptcy and otherwise suspended or interrupted as
provided by law.
Proposed law provides that after three years from recordation of certificate, the tax lien certificate
holder can institute proceeding to enforce a tax lien.
Proposed law requires that 90-180 days prior to filing an action to enforce the tax lien, tax lien
certificate holder shall send notice to all tax lien certificate holders and to all tax auction parties.
Proposed law authorizes the tax lien certificate holder to make necessary repairs to the property to
comply with a notice/order of the political subdivision charged with enforcement of property
standards when authorized by a court.
Present law authorizes any person to request that notices sent to tax debtor also be sent to requesting
party.
Proposed law retains present law but adds that any such request is valid only for the current year.
Proposed law provides a procedure for the tax lien enforcement process.
Proposed law provides for the redemption of the tax lien certificate by paying the redemption price.
Effective if and when the proposed amendment of Article VII of the Constitution of La. contained
in the Act which originated as Senate Bill No. 119 of this 2024 R.S. of the Legislature is adopted at
a statewide election and becomes effective. (Amends R.S. 47:1993, the headings of Chapter 5 and Part I of Subtitle III of Title 47 of the
Louisiana Revised Statutes of 1950, R.S. 47:2122, 2124, 2126, 2127, 2130, 2132-2136, 2151, 2153-
2156, 2158-2160, 2162, 2163, Part V of Chapter 5 of Subtitle III of Title 47 of the Louisiana Revised
Statutes of 1950, comprised of R.S. 47:2241-2247, the heading of Part VI and Subpart A of Chapter
5 of Subtitle III of Title 47 of the Louisiana Revised Statutes of 1950, 2266, 2286, 2287, and 2289,
2290, 2291(A) and (B); adds R.S. 47:2127.1, 2140, 2150, 2151.1, 2160.1, and 2267, and repeals R.S.
47:2121, 2123, 2128, 2131, 2152, 2157, 2161, Part IV of Chapter 5 of Subtitle III of Title 47 of the
Louisiana Revised Statutes of 1950, comprised of R.S. 47:2196-2238.9, R.S. 47:2271-2280, and
2288)