Provides relative to changes of liability for payment of taxes during the redemptive period after a tax sale. (8/1/12) (RE SEE FISC NOTE LF EX See Note)
Impact
With the enactment of SB 574, significant changes would affect property taxation protocols in Louisiana. The bill requires tax sale purchasers to file an affidavit to update the records regarding property ownership after the redemption period expires. This new procedure aims to streamline the process of transferring tax liabilities to ensure that properties are assessed solely in the name of the tax sale purchaser after the redemption period. Furthermore, it places a limit on the reimbursement amount for improvements made on abandoned or blighted properties, which could have implications for property development and rehabilitation efforts.
Summary
Senate Bill 574 focuses on modifications related to the payment of ad valorem taxes during the redemption period following a tax sale in Louisiana. The proposed law states that once a property is sold at tax sale, all taxes on that property will be assessed to and paid by the tax sale purchaser until the property is redeemed. If the property is redeemed, the redeeming party must cover all statutory assessments related to the property made after the tax sale. This legislation clarifies the responsibilities of tax sale purchasers and reinforces the validity of tax sales regardless of the assessment status of the property.
Sentiment
The sentiment surrounding SB 574 appears to be cautiously supportive among legislators and stakeholders involved in property tax management. Proponents argue that the bill provides necessary clarity regarding tax liabilities and encourages investment in blighted properties by offering a reimbursement structure for improvements. However, opponents may express concern about the financial burden placed on those redeeming properties, especially if they are required to reimburse significant costs associated with compliance improvements.
Contention
Some debate arises around the balance of responsibilities between tax sale purchasers and property owners. The requirement for reimbursements to purchasers for property improvements may be seen as a double-edged sword, providing both incentive for property rehabilitation and potential financial strain on those looking to redeem their properties. Additionally, while the bill aims to establish clearer guidelines and efficiencies in tax assessments, its enforcement and administration may pose challenges for local tax authorities as they navigate changes brought about by this legislation.
Provides for procedures for the collection of delinquent ad valorem taxes and statutory impositions, tax auctions, tax auction certificates, and the redemption of certain property (RE SEE FISC NOTE LF RV See Note)