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 Post subject: Changes to the Louisiana property tax laws
PostPosted: Sat Jun 30, 2012 3:56 am 

Joined: Sat Jun 16, 2012 1:26 am
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The below information shows the changes made (effective January 1st 2009) governing payment and collection of property taxes, tax sales, adjudicated property, redemptions, quiet title proceedings, and actions to annul.

http://www.legis.state.la.us/billdata/s ... did=507629


Burrell (HB 337) Act No. 819

Existing law (R.S. 47:2101-2262, R.S. 33:2861-2892.9 and 4720.11-4720.49, and R.S.
13:4951) provides for the payment and collection of property taxes, tax sales, adjudicated
property, redemptions, quiet title proceedings, and actions to annul.

New law (R.S. 47:2121) provides the purpose and principles of the proposed revision of the
law on property tax payment and collection procedure, tax sales, and adjudicated property,
which are to amend, restate, and reorganize the law so as to encourage the payment and
efficient collection of property taxes, satisfy the requirements of due process, provide a fair
process for the redemption of tax sale and adjudicated property, and otherwise encourage the
return to commerce of such properties, and to retain existing procedures not inconsistent with
the proposed revision.

Existing law (Title 47, Subtitle III, Ch. 4, Part II and Ch. 5, Parts I-III) does not provide a
definitions section for the law on property tax collection, tax sales, and adjudication.

New law (R.S. 47:2122) provides a comprehensive definitions section for the proposed new
Chapter 5 of Subtitle III, a revision of the law of tax sales/adjudicated property.

New law (R.S. 47:2123) provides for the effect of affidavits filed as provided by other
provisions in the revision, and provides that such affidavits are admissible and evidence a
conversion of tax sale title to a full ownership interest.

New law (R.S. 47:2124) limits the liability of tax collectors and assessors for their actions
under new Chapter 5 of Subtitle III.

New law (R.S. 47:2126) provides the duty of assessors to, among other duties, ensure the tax
rolls are complete, that co-owners are listed as tax debtors, and that tax sale purchasers are
listed as owners; additionally, the assessor is not required to split assessments for one parcel,
but is allowed to make separate assessments for undivided interests. Authorizes a tax
assessor to update a tax roll later than January 1 of the year in which the taxes are collectible.

Existing law (R.S. 47:2101) provides the time for payment of ad valorem taxes and
procedures for notifying the tax debtor.

New law (R.S. 47:2127) reproduces the substance of R.S. 47:2101, but requires the sending
of the notice of taxes due to tax notice parties by U.S. mail, allows the tax collector to send
a notice to any other tax sale party, and provides a form for the written notice.

Existing law (R.S. 47:2101.1) provides for the inclusion of liens in the tax bill, and provides
that failure to pay the liens subjects the property to the same provisions of law that govern
tax sales of immovable property.

New law (R.S. 47:2128) retains existing law, but expands it to require that all "statutory
impositions" are included as required payments.

Prior law (R.S. 47:2103) provided for the payment and receipt of taxes by the tax collector,
provided procedure for accepting warrants for taxes, and provided special procedures for
New Orleans and the parish of Orleans.

New law (R.S. 47:2129) deletes payment and receipt procedure for warrants, deletes the
special provisions for New Orleans and the parish of Orleans, and otherwise retains the
substance of existing law, but allows the collectors to accept payment other than cash, and
specifies that the tax collector may refuse to accept anything less than full payment of all
statutory impositions.

Existing law (R.S. 47:2106) provides for payment in installments of delinquent ad valorem
taxes and deferment of taxes in emergencies.

New law (R.S. 47:2130) reproduces existing law.

Existing law (R.S. 47:2111) provides a three-year prescriptive period for all tax privileges
and mortgages granted by law to secure the payment of ad valorem taxes, and provides
special cancellation procedures for the parish of Orleans.

New law (R.S. 47:2131) retains the substance of existing law by providing that no tax sale
shall occur after three years have elapsed from the end of the year the ad valorem taxes were
due, and deletes the special provisions for the parish of Orleans.

Existing law (R.S. 47:2108 and 2108.1) provides for refund of taxes erroneously paid to the
state and to a political subdivision.

New law (R.S. 47:2132) retains and consolidates existing law; adjusts tax appeal procedure
to follow the 1974 constitution, which provides that the state no longer collects ad valorem
taxes for each political subdivision, leaving the collection to each political subdivision; and
specifies that the La. Tax Commission is the proper authority to hear tax appeals. Clarifies
that a claim for taxes erroneously paid on property may be on any exempt property, not just
homestead exempt property.

New law (R.S. 47:2133) allows the tax collector to cancel a tax sale without resort to a
lawsuit when the statutory impositions (taxes and any additional items in the tax bill) have
been paid, or when the tax sale was conducted in violation of the automatic stay in a federal
bankruptcyproceeding. Requires the tax collector to record the cancellation with the recorder
of conveyances.

Existing law (R.S. 47:2110) provides for suits to recover taxes paid under protest.

New law (R.S. 47:2134) reproduces existing law without substantive change.

Existing law (R.S. 47:2112) provides for the acceptance of pro rata taxes on property
acquired by the state from private owners.

New law (R.S. 47:2135) reproduces existing law without substantive change.

Existing law (R.S. 47:2113) provides the duty of assessors and the tax commission to amend
the tax rolls to conform to the proration of taxes.

New law (R.S. 47:2136) reproduces existing law without substantive change.

Existing law (R.S. 47:2114) provides for the computation of proration and the placing of
property on exempt tax rolls.

New law (R.S. 47:2137) reproduces existing law without substantive change.

Existing law (R.S. 47:2171) provides for ad valorem taxation on movable property and a
written notice of delinquency.

New law (R.S. 47:2141) reproduces existing law without substantive change.

Existing law (R.S. 47:2172) provides for ad valorem taxation on movable property, and
seizure and sale thereof for failure to pay taxes.

New law (R.S. 47:2142) reproduces existing law without substantive change.

Existing law (R.S. 47:2173) provides for ad valorem taxation on movable property and the
procedure for collection and enforcement when the property has been moved from the parish
or municipality.

New law (R.S. 47:2143) reproduces existing law without substantive change.

Existing law (R.S. 47:2174) provides for ad valorem taxation on movable property and the
summary seizure to secure payment.

New law (R.S. 47:2144) reproduces existing law without substantive change.

Existing law (R.S. 47:2175) provides for ad valorem taxation on movable property, and
allows the collector, when he is unable to seize the property for the taxes assessed against it,
to seize and sell any other property of the tax debtor to collect the taxes owed.

New law (R.S. 47:2145) reproduces existing law without substantive change.
Existing law (R.S. 47:2176) provides for ad valorem taxation on movable property, the tax
debtor's right to point out the particular movable property to be sold at public sale, and the
right to post bond and repossess the property pending the sale.

New law (R.S. 47:2146) reproduces existing law without substantive change.

Existing law (R.S. 47:2177) provides for ad valorem taxation on movable property and the
payment of taxes immediately by the party taking possession thereof.

New law (R.S. 47:2147) reproduces existing law without substantive change.

Existing law (R.S. 47:2178) provides that no sale or other encumbrance of property after the
filing of the tax roll shall affect the taxes assessed, and the property shall still be seized,
advertised, and sold for delinquent taxes as the property of the tax debtor to whom assessed.

New law (R.S. 47:2151) reproduces existing law, but changes the deadline from the "filing"
of the tax roll to the "delivery" of the roll to the tax collector so as to conform to the new
procedure that eliminates the requirement of the filing of the tax rolls in the mortgage
records.

Existing law (R.S. 47:2179) provides that the tax collector is authorized to receive the
proportion of taxes due on a separate lot or parcel when two or more lots or parcels of ground
have been assessed together as a whole to the same tax debtor.

New law (R.S. 47:2152) reproduces existing law, but clarifies that the assessor may, but is
not required to, accept the proportion of taxes due upon such separate parcels.

Existing law (R.S. 47:2180, 2180.1, and 2181) provides the notice of delinquency,
advertisement for sale, and place and time of public sale of immovable property.

New law (R.S. 47:2153) retains the substance of existing law, consolidating the notices of
delinquency and the notices of tax sale into a single notice, and providing statutory "safe
harbor" forms for the delinquency notice, published notice, and notice sent after the tax sale
to any new owners who mayhave purchased the property after the preparation of the tax rolls
for the year that the property was sold for taxes, which specify the time and place of sale,
specify that "tax sale title" to the property is transferred at the tax sale, and, where applicable,
specify that the least quantity of the property sold shall be determined by undivided interests
and that the least quantity that can be sold is one percent or less of the undivided whole.
Requires tax sales to be conducted in the manner provided by law for judicial sales, but also
authorizes a tax collector to conduct a tax sale by using an online or electronic bidding
process consistent with the law governing judicial sales.

Existing law (R.S. 47:2182) provides for tax sales to be held on or before May 1 or as soon
thereafter as possible, and provides that tax collectors failing to seize, advertise, or sell
delinquent property are guilty of nonfeasance in office.

New law (R.S. 47:2154) reproduces the substance of existing law, but deletes the liability
for nonfeasance in office, specifies that "tax sale title" is sold (or tax sale title to an undivided
interest), and provides that the price to be paid is the amount of statutory impositions.
Existing law (R.S. 47:2183(A)) provides for the issuance of a tax deed to purchasers of
property sold for taxes.

New law (R.S. 47:2155) modifies existing law by substituting a "tax sale certificate" for the
"tax deed", which certificate, however, constitutes a tax deed for purposes of the La.
Constitution, and provides a "safe harbor" form tax sale certificate, which eliminates the
proces verbal of existing law.

Existing law (R.S. 47:2183(C)) provides for post-sale notice of the tax sale to be sent by the
purchaser to the "prior owner" and other persons with an interest in the property.

New law (R.S. 47:2156) modifies existing law by allowing, but not requiring, the tax sale
purchaser to give notice of the right to redeem to tax sale parties, requires the tax collector
to send notice of the right to redeem, allows a political subdivision to give notice of the right
to redeem even if the property has become adjudicated property, and provides statutory "safe
harbor" notice forms.

New law (R.S. 47:2157) is designed to evidence as a matter of public record the conversion
of tax sale title to ownership, by providing that a tax sale purchaser, upon the expiration of
the redemptive period, may send a notice to parties whose interest the purchaser intends to
terminate, which notice shall constitute a notice of sale, and which notice may be filed in the
mortgage records, and the purchaser may publish a notice, and may file an affidavit attesting
to the notices sent and actions taken, which affidavit shall serve as a cancellation of all
statutory impositions due on the property. Statutory forms are provided for both the notices
and the affidavit.

Existing law (R.S. 47:2185) allows the tax sale purchaser to obtain actual possession of the
property with the consent of the tax debtor, or obtain a writ of possession commanding the
sheriff to seize the purchased property and place the purchaser in actual possession.

New law (R.S. 47:2158) modifies existing law by allowing a writ of possession to be issued
only when the possession by the tax purchaser is necessary to comply with the order of a
political subdivision, and provides a privilege in favor of the purchaser for the cost of
complying with an order of the political subdivision.

Existing law (R.S. 47:2180.1(A)) provides for notice of delinquent taxes to mortgagees
requesting notice.

New law (R.S. 47:2159) modifies existing law by allowing any person to request notice of
tax delinquency, such person to receive all notices that are sent to a tax debtor, upon payment
of a fee, not to exceed $20, to defray the costs, such request to be renewed annually.
Provides that a mortgage holder who has requested notice and paid the fee shall receive
notices until such time that the tax collector receives notice of the cancellation of the
mortgage inscription.

Existing law (R.S. 47:2192) provides that no sale of property for taxes due for the prior year
shall invalidate the claim for taxes due on the property for any previous year or years.

New law (R.S. 47:2160) modifies existing law by providing that tax sale title shall not affect
the claim of a political subdivision for the taxes due on the property that were not included
in the bid price.

Prior law (R.S. 47:2193) provided that all taxes due after the recording of the tax deed are
assessed to and paid by the purchaser, until the property is redeemed.

New law (R.S. 47:2161) conforms prior law to the new tax scheme by providing that all
taxes due after the "filing of the tax sale certificate" are assessed to and paid by the tax sale
purchaser, and provides that, if redeemed, the person redeeming shall pay all statutory
impositions assessed after the tax sale, and further provides that failure to assess the property
in the name of the purchaser does not affect the validity of the sale.

Prior law (R.S. 47:2194) prohibited the purchase by assessors, tax collectors, and other
officers of property at tax sale, and nullifies any such sale.

New law (R.S. 47:2162) retains the prohibition, but does not nullify the sale if the violator
subsequently sells the property to a good faith purchaser, and specifies that in addition to any
penalties provided by law, the violator must disgorge any profits to the tax debtor.

New law (R.S. 47:2163) provides that an owner or co-owner may pay the statutory
impositions due at the time of the tax sale, and the purchase of tax sale title by the owner or
co-owner shall be deemed a redemption.

Existing law (R.S. 47:2186) provides, in part, for adjudication to the state of immovable
property if the minimum bid, which must be set for an amount at least equal to the taxes,
costs, and interest, is not met.

New law (R.S. 47:2196) modifies existing law to provide for adjudication to the political
subdivision if the bid, which must be set for an amount at least equal to the statutory
impositions, interest, and costs, is not met; provides for the form and filing of a tax sale
certificate in the conveyance records in the name of the acquiring political subdivision; and,
allows the political subdivision, with the agreement of the tax collector, to place the
adjudicated property back up for tax sale the following year or years. Deems the purchase of
a tax sale title to an adjudicated property to have occurred at the tax sale at which the
property was adjudicated to the political subdivision. Clarifies that these requirements are
subject to the requirement in the constitution that a subsequent sale with no minimum bid
is allowed in parishes with populations in excess of 450,000.

New law (R.S. 47:2197) provides that adjudicated property adjudicated to the political
subdivision at tax sale remains assessed in the name of the tax debtor, that the political
subdivision has no liability with respect to the property as a result of the adjudication, and
that no encumbrance against the political subdivision affects the adjudicated property.

New law (R.S. 47:2201) allows a political subdivision to adopt a general ordinance
governing the public sale and donation of adjudicated property, provided it meets the
requirements of R.S. 47:2202 (minimum bid prices), 2203 (pre-bidding procedures), and
2206 (notice).

New law (R.S. 47:2202) sets the minimum bid price for sales of adjudicated property.

New law (R.S. 47:2203), though based in part on existing law, allows an individual to initiate
a public sale of particular adjudicated property. It allows and provides the procedure for the
political subdivision to initiate the sale of adjudicated property by ordinance.

New law (R.S. 47:2204) allows the political subdivision to impose terms and conditions in
the ordinance or subsequent ordinance allowing for the public sale of adjudicated property.

New law (R.S. 47:2205) allows the donation of adjudicated property by the political
subdivision subject to constitutional limits.

New law (R.S. 47:2206), based in part on existing law, provides the notice required to be
sent, either by the political subdivision or the acquiring person, after sales or donations of
adjudicated property, and is substantially similar to the notice of tax sale provisions in R.S.
47:2157(A), (B), and (C), excepting that it provides different deadlines for duly notified
persons to either redeem the property or bring an action for nullity, and allows the notice to
be sent prior to the expiration of the applicable redemptive period.

New law (R.S. 47:2207) allows a person acquiring adjudicated property to require the
political subdivision to authenticate an act of sale or donation, and provides the non-warranty
"safe harbor" forms for the sale or donation.

New law (R.S. 47:2208) allows the person acquiring adjudicated property from the political
subdivision to file an affidavit as to how persons with an interest in the property were
identified and notified, such affidavit constituting a termination of all statutory impositions
if the property was acquired by sale, and terminating only the statutory impositions of the
political subdivision, if acquired by donation.

New law (R.S. 47:2209), based on existing law, provides that a tax debtor or owner cannot
use the sale or donation of adjudicated property process to clear the property of
encumbrances.

Existing law (R.S. 33:4720.33) provides that the political subdivision shall not be deemed
the owner of the property, and is not liable during the period between the adjudication and
post-adjudication donation, such liability remaining with the owner of record.
New law (R.S. 47:2210) reproduces the substance of existing law, providing that the "current
owner" remains liable as owner of the property while the property remains adjudicated and
that the political subdivision is not liable solely as owner of the property.

New law (R.S. 47:2211) provides the default rule for pro rata distribution of the proceeds of
the sale of adjudicated property when there are overlapping statutory impositions or
governmental liens, absent agreement amongst the holders.

Existing law (R.S. 33:2862) provides for the municipality or parish to institute a suit to
obtain possession of adjudicated property immediately after the recordation of the proces
verbal of the adjudication.

New law (R.S. 47:2231) allows the political subdivision to institute a suit to obtain
possession at any time after the tax sale certificate for adjudicated property is filed.
Existing law (R.S. 33:2863) provides for placing the political subdivision in possession of
the adjudicated property.

New law (R.S. 47:2232) reproduces the substance of existing law, and provides that, upon
presentation of a certified copy of the tax sale certificate, the judge shall issue an order of
possession commanding the sheriff to place the political subdivision into actual possession.
Existing law (R.S. 33:2864) provides for leasing of the adjudicated property by the political
subdivision once it has obtained possession.

New law (R.S. 47:2233) reproduces existing law.

Existing law (R.S. 33:2876) provides for redemption of adjudicated property.

New law (R.S. 47:2234) reproduces existing law, authorizing the political subdivision to
allow the owner to redeem the property by paying past-due and current installments, together
with interest, costs, and penalties; and, provides the political subdivision retains the lien for
remaining and future installments until fully paid.

Existing law (R.S. 33:2878) authorizes a parish or municipality to establish servitudes over
adjudicated property.

New law (R.S. 47:2235) retains existing law authorizing a political subdivision to establish
servitudes, adjusting for the new adjudicated property procedure and terminology.
Prior law (R.S. 33:2877) allowed the political subdivision to claim ownership of adjudicated
property three years after the adjudication if the property was needed for a valid public
purpose such as would give rise to an expropriation.

New law (R.S. 47:2236) is based on prior law, modified so that it allows the political
subdivision to obtain full ownership interest at any time after the adjudication, eliminates the
"public purpose" prerequisite, and utilizes the notice and affidavit procedures previously
established in this revision for use by tax sale purchasers, or purchasers/donees of
adjudicated property, to obtain full ownership.

Existing law (R.S. 33:2864.1 and 2866.1) authorizes a political subdivision to sell or donate
adjudicated property once it has obtained full ownership.

New law (R.S. 47:2237) reproduces the substance of existing law.

New law (R.S. 47:2241), though it affirms jurisprudence, provides that all redemptive
periods provided in the constitution shall be peremptive.

New law (R.S. 47:2242) provides that any person may redeem tax sale title to property, but
the redemption must be in the name of the tax debtor.

Prior law (R.S. 47:2222) provides for redemption payments to the tax collector or tax
purchaser, amounts, redemption of two or more lots or parcels, and certificates issued by the
collector.

New law (R.S. 47:2243), though based in part on R.S. 47:2222, provides for redemption
payments to be made only through the tax collector; further requires the payment of not only
the amount due plus interest and penalties for the year of the tax sale, but also subsequent
statutory impositions, plus 5% penalty, and 1% interest per month to the extent not paid by
the tax debtor; and eliminates the provision allowing redemption of less than the entirety of
a tax parcel. Requires the tax collector to promptly remit a redemption payment to the tax
sale purchaser.

New law (R.S. 47:2244) details the additional costs the political subdivision may impose as
part of the redemption price.

Prior law (R.S. 47:2222(C)) provides for the issuance of a redemption certificate.

New law (R.S. 47:2245) provides that the redemption certificate can only be issued by the
tax collector, and provides a "safe harbor" redemption certificate form.

New law (R.S. 47:2246) provides that adjudicated property may be redeemed as a matter of
right so long as it remains on the adjudicated rolls and full ownership has not been obtained
by the political subdivision or acquiring person.

New law (R.S. 47:2247) requires the person redeeming adjudicated property to pay all actual
costs incurred by the political subdivision or acquiring person.

Existing law (R.S. 47:2228 and 2228.1) provides the procedure for quieting tax title.

New law (R.S. 47:2266) combines existing law provisions, and reproduces the substance of
existing law on quieting tax title, adjusted to conform to the proposed revision, and
additionally allowing for the filing of a notice of lis pendens.

Existing law (R.S. 13:4941 et seq.) provides for purchasers of property at sheriffs' sales,
those made by authority of the court, those made by the syndics of insolvent estates, and
those of any description made by the authority of justice, to protect themselves from eviction
by instituting monition proceedings as provided in R.S. 13:4942-4951, and specifically
makes the proceedings available to tax sales in R.S. 13:4951.

New law (R.S. 47:2271-4280, and repeal of R.S. 13:4951) based on the monition proceeding
of Title 13, provides that monition is available specifically to persons acquiring tax sale title
or ownership of property under the revision, and modifies the monition proceedings as
applicable to tax sales and adjudicated property as follows: the monition proceeding is made
available to political subdivisions, is allowed after the expiration of the redemptive period,
allows the petitioner to file a notice of lis pendens, requires notice to persons who may have
an interest in the property, extends the published notice delay periods, and adds affidavit
procedure requirements similar to those of the tax sale notice affidavit in new law (R.S.
47:2157). Additionally, monition provisions specific to the revision are provided for the
petition, the filing of the judgment and affidavit, and costs, which are to be paid by the
petitioner when no opposition is made to the confirmation of the sale.

New law (R.S. 47:2286-2292) provides for actions to annul specific to the revision,
specifying that no tax sale shall be set aside except for a payment nullity, redemption nullity,
or a nullity under new law (R.S. 47:2162, forbidding tax collectors or assessors from
purchasing at tax sale), all of which are relative nullities; provides the time in which a nullity
action must be brought; specifies that the tax sale certificate and the act by which an
acquiring person obtains full ownership constitute just title for purposes of acquisitive
prescription; provides for the trial, judgment, and effect of judgment in a nullity action; and
provides the acquiring person's rights to certain fruits severed or acquired prior to a judgment
of nullity.

Effective January 1, 2009.

(Adds a new Chapter 5 of Subtitle III of Title 47, comprised of new Parts I-VII; to be
comprised of R.S. 47:2121-2292; Repeals R.S. 13:4951, R.S. 33:2861-2892.9 and 4720.11-
4720.49, R.S. 47:2101-2114, and former Parts I - III of Chapter 5 of Subtitle III of Title 47,
formerly comprised of R.S. 47:2171-2262)


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