Another state making changes to their tax sale laws (Louisiana)

[Will Sifert]

Summary from what I have read and what was explained to me. There will be a state wide election in December to change the tax sale laws. To me it sounds similar to Florida. The state is pushing for it and I am sure were it will be worded on the ballot to sound like a great thing, 99.9% of the public doesn't understand this stuff. I have no doubt it will pass.

Changes: There will still be a tax lien sale like there is now except the bidding mechanism will be to bid down % interest rate instead of % of ownership. After the 3 year redemption period you need to do noticing, file law suit, get a judgement but instead of taking ownership of the property like you do now, the new system will cause it to go to a tax deed sale to the highest bidder. Overage can go back to the owner. 

I have done very well acquiring ownership of abandoned, run down houses and vacant lots. Many times the owners can not be found or if they are they want nothing to do with it and in a lot of cases if found, I pay them for a quit claim. I wonder if the parish will keep the overages in all of the cases where the owners can't be found or if they will scoop the difference in interest like AZ does.  I have quieted title on over 20 properties over the years, with many more in the process now or will be starting soon. I have turned a couple thousand dollar investment and lots of work and learning into a seven figure business. I guess all good things come to an end eventually. The only upside is that this doesn't go into effect until 2026 so everything I bought last year, this year and next year will continue under the current laws. As of 2026 I will no longer buy liens in LA, there is no upside. Make a lot less on interest and no change to acquire property. This will help some owners get back a little money from overages but I bet in most cases its the parish that will get what would have been my profit. They found a way to profit off of tax sales much like other states have done.

Louisiana—Property Tax—Administration of tax sales of immovable property.

, effective 01/01/2026, upon adoption of the proposed constitutional amendment at the statewide election to be held 12/07/2024, repeals numerous provisions related to tax sales and provides that the assessment of property taxes and other impositions on immovable property will constitute a lien and privilege on the property in favor of the political subdivision to which taxes and other impositions are owed. The legislature must provide, by law, for: (1) interest on the delinquent taxes and other impositions not to exceed 1% per month on a non-compounding basis; (2) a penalty not to exceed 5% of the delinquent taxes and other impositions; (3) a period of time during which the lien cannot be enforced; (4) a procedure for claiming the excess proceeds from the sale of the property as a result of the enforcement of the lien; and (5) the authority of the tax collector to waive penalties for good cause. The legislature may postpone the payment of taxes, but only in cases of emergency declared by the governor or a parish president pursuant to the Louisiana Homeland Security and Emergency Assistance and Disaster Act.