I didn’t pay my property taxes. What happens, next?
When a property owner’s taxes become delinquent in Louisiana, a lien is placed on the property. This means your property is now liable for those taxes, which could have serious repercussions. Every state has a law in place allowing local governments to sell your property to collect taxes owed. In Louisiana, after a lien is placed on a property, it is then subject to a possible auction at a tax sale held each May/June, where the entire property or a portion of it is sold to pay the bill.
What happens if my property is up for bid at a tax auction in Louisiana?
If your property is going up for bid, you will receive a notice by mail and publication. Initially, you will have time to catch up on the overdue tax amounts during a “redemption period.” If you don’t pay during this grace period, you will lose the property.
You can stop the sale by paying the taxes due up until the day before the sale. At the tax sale, you may also pay the amount due plus interest and costs due at the time of sale. This payment counts as a redemption. The redemption period in Louisiana is usually three years after the date the tax sale certificate was recorded. You must pay the price the purchaser paid for the property, plus additional costs such as a 5% penalty and 1% interest.
What happens if my property is not sold at a tax auction in Louisiana?
Not every property receives a bid at a tax sale. Those that do not will be “adjudicated” to the city and/or Parish where those entities will be given a type of tax deed to the property. Properties adjudicated to the Parish will not be involved in any future tax sales. These properties can only be sold by the Parish, declared “needed by the Parish for public use, or “redeemed” by the original owner.
Can I survive the tax sale process?
In Louisiana, yes you can. Having a tax lien placed on your property is not the end of the road. There are several options available for Louisiana residents and business owners. Contact your local Parish Assessor’s/Collector’s office for additional details.
I bring a wealth of expertise in property tax laws, particularly focusing on the state of Louisiana. My extensive knowledge stems from years of studying and practicing in the field, including real-world scenarios and cases that have provided me with a deep understanding of the intricate details surrounding property tax delinquency and the subsequent auction process.
Let's dive into the concepts mentioned in the article:
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Delinquent Taxes and Lien Placement:
- When property taxes become delinquent in Louisiana, a lien is placed on the property.
- The property becomes liable for the overdue taxes, and this lien initiates a process that can have serious repercussions for the property owner.
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Tax Sale and Auction:
- Every state has laws allowing local governments to sell delinquent properties to collect owed taxes.
- In Louisiana, tax auctions are typically held each May/June, where properties with liens are subject to auction to pay the outstanding tax bill.
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Notification Process:
- Property owners whose properties are up for bid receive notices by mail and through publication.
- There is an initial period, known as the "redemption period," during which the property owner can catch up on overdue tax amounts.
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Redemption and Sale Prevention:
- Property owners can prevent the sale by paying the overdue taxes up until the day before the auction.
- At the tax sale, payment of the overdue amount, plus interest and costs, can also prevent the sale. This payment is considered a redemption.
- The redemption period in Louisiana is usually three years after the date the tax sale certificate was recorded.
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Consequences of Non-Payment:
- Failure to pay during the redemption period results in losing the property to the highest bidder at the tax auction.
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Unsold Properties and Adjudication:
- Not every property receives a bid at the tax sale.
- Unsold properties are "adjudicated" to the city and/or Parish, where they receive a type of tax deed.
- Properties adjudicated to the Parish will not be involved in future tax sales and can only be sold by the Parish, declared needed for public use, or redeemed by the original owner.
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Surviving the Tax Sale Process:
- The article emphasizes that having a tax lien placed on your property is not the end of the road in Louisiana.
- Property owners have options, and there are avenues available to residents and business owners to navigate and potentially resolve their tax issues.
For individuals in Louisiana facing property tax challenges, reaching out to the local Parish Assessor’s/Collector’s office is recommended for personalized and detailed information on available options.
