Requests the La. State Law Institute to study bidding procedures for tax sale property
The anticipated impact of HR69 on state laws involves the procedures surrounding tax sales, particularly how properties are bid on and valued at such auctions. By focusing on long-term investments, the proposed changes could lead to a more robust process that encourages bidders who are committed to improving properties rather than simply purchasing shares for minimal interests. This shift in bidding philosophy has implications for property taxation and the overall handling of delinquent taxes in Louisiana, potentially resulting in more sustainable property rehabilitations.
House Resolution 69, sponsored by Representative Mandie Landry, urges the Louisiana State Law Institute to study and recommend modifications to the bidding procedures for tax sale property. The resolution highlights issues with the current system, particularly the practice of allowing an initial bid of one percent on tax sale properties, which may lead to diminished competition among bidders. The resolution emphasizes the need to explore bidding procedures that favor long-term investments in properties, especially those that are blighted or abandoned, thus promoting their rehabilitation and return to the market.
The sentiment surrounding HR69 appears to be largely positive among advocates of property development and investment. Supporters argue that the current tax sale bidding procedures are outdated and can discourage significant investment in rehabilitating distressed properties. However, there may be some contention from those who feel that changing these bidding laws could undermine existing property rights or create unintended consequences in the marketplace.
Notable points of contention regarding HR69 may include concerns about how a change in bidding procedures might affect small investors or independent bidders versus larger investment firms. Additionally, there is a potential debate about the balance between facilitating increased property investment and ensuring fair competition in the tax sale process. Ensuring that all interested parties have a fair opportunity to bid and invest while discouraging a purely speculative approach to tax sales remains a nuanced aspect of the discussion.