The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Danielle Clapinski.
DIGEST
SB 504 Original 2024 Regular Session Luneau
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 "adjudicated property", "duly notified", "governmental lien",
"redemption nullity", "send", "tax sale party", "tax sale property", "tax sale purchaser" and "tax sale
title".
Proposed law repeals these definitions from present law.
Proposed law defines "delinquent 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 "tax auction party" as the tax notice party, the owner of the property as shown
in the conveyance records, and any other person holding an interest in the property.
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. Proposed law defines "termination price" as the amount calculated pursuant to R.S. 47:2243 that is
required to be paid in order to terminate a tax lien certificate.
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 a 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 the 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 the tax sale title to the 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 databases 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 and the effect of the adjudication of the
property.
Proposed law repeals present law.
Proposed law provides that a delinquent obligation and the lien and privilege evidenced by the tax
lien certificate prescribes seven years after recordation unless an action to enforce the tax lien is
filed. Provides that if no action filed within seven years, recorder of mortgages shall cancel the
inscription upon request of an interested party. Upon expiration of this time period, the recorder of
mortgages shall cancel the inscription of the tax lien certificate from the records upon request of an
interested party. No action to collect the delinquent obligation or enforce the lien and privilege may
be instituted more than seven years after the recordation of the tax lien certificate. This period shall
be peremptive.
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 at least 180 days prior to filing an action to enforce the tax lien, the 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.
Proposed law provides for a procedure to recognize the amount due under a tax lien certificate.
Proposed law provides for the termination of the tax lien certificate by paying the termination price.
Proposed law provides that if a person holding an interest in the property other than a certificate
holder, tax sale purchaser, or tax certificate purchaser is the winning bidder at the judicial sale, then
only the amount necessary to satisfy the costs of sale, the commission and the amounts due to the
plaintiff certificate holder need be delivered to the sheriff and the effect of the judicial sale shall be
the same as if the tax lien certificate was terminated immediately prior to the rendering of the
judgment being enforced. Proposed law provides that a judicial sale terminates all interests in the immovable property filed
prior to the filing of the tax lien certificate except the following:
(1)Building restrictions, condominium declarations, or other common ownership interest
regimes.
(2)Dedications in favor of political subdivisions, the public, or public utilities.
(3)Immobilizations of manufactured homes.
(4)Integrated coastal protection as defined in R.S. 49:214.2 or a project listed in the
comprehensive master coastal protection plan as defined in R.S. 49:214.2.
(5)Levee or drainage projects by the departments, agencies, boards, or commissions of the state
of Louisiana and their political subdivisions.
(6)Mineral rights.
(7)Pipeline servitudes.
(8)Predial servitudes.
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, 2058, 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, 2132-2137, 2151, 2153-
2156, 2158-2160, 2162, 2163, 2201, 2202(A), 2203, 2204, 2211, 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 headings
of Part VI and Subpart A of Chapter 5 of Subtitle III of Title 47 of the Louisiana Revised Statutes
of 1950; adds R.S. 47:2127.1, 2140, 2151.1, 2160.1, 2164, 2206(D), 2207.1, 2241.1, 2266.1, 2267,
2268, and 2269; repeals R.S. 47:2121, 2123, 2128, 2131, 2152, 2157, 2161, 2196, 2197, 2266, and
2271-2280)