Louisiana § RS 47:2154 - Tax lien auctions; time of auction; price

§ RS 47:2154. Tax lien auctions; time of auction; price

            A.(1) The tax collector shall advertise for sale by public auction the tax lien on or before May first of the year following the year in which the taxes were assessed, or as soon thereafter as possible.

            (2) Notwithstanding the provisions of Paragraph (1) of this Subsection and R.S. 47:2127(D) to the contrary, a delinquent obligation related to immovable property subject to an outstanding tax lien certificate issued in favor of and held by a political subdivision may be excluded from a tax lien auction at the election of the political subdivision. As soon as practicable after an election pursuant to this Paragraph is made, the tax collector shall issue and file in the mortgage records a tax lien certificate for the delinquent obligation in favor of the political subdivision.

            B. The tax lien auction shall be conducted on any weekday, with bidding opening not earlier than 8:00 a.m. and closing no later than 8:00 p.m. If a tax lien auction is conducted by using an online or electronic bidding process that is conducted over the course of multiple days, bids may be placed on any day at any time on any tax lien upon which bidding has not closed, provided that all bidding closes on a weekday within the hours prescribed in this Subsection. Any bid received prior to the opening of the auction shall be null and void.

            C. The auction price shall be the face value of the tax lien certificate.

            D.(1) The auction shall be conducted by competitive bid. The subject of the competitive bidding shall be the monthly rate at which interest will accrue on the face value of the tax lien certificate following its issuance.

            (2)(a) Subject to a maximum bid of one percent per month, bidders may submit bids reducing the monthly interest rate in increments of one-tenth of one percent or an integral multiple thereof. The bid that requires the assessment of interest at the lowest rate shall be declared the winner. If multiple bidders submit the same lowest bid, the winner shall be the first in time to submit the bid.

            (b) Notwithstanding the provisions of Subparagraph (a) of this Paragraph, no bid shall be accepted that purports to reduce the rate of monthly interest below seven-tenths of one percent.

            E.(1) No later than thirty days after conclusion of the tax lien auction, the tax collector shall issue and file in the mortgage records of the parish in which the property is situated a tax lien certificate in favor of the winning bidder. If there is no bidder, the tax collector shall issue and record the tax lien certificate in favor of the political subdivision. The recording cost due to the clerk of court shall be included in the price paid at the tax lien auction and the face value of the tax lien certificate. The tax collector shall also deliver a certified copy of the tax lien certificate to the winning bidder.

            (2) The tax lien certificate shall be prima facie evidence of the validity of the tax lien and the assignment to the person named thereon.

            F. Upon the issuance of a tax lien certificate, interest shall accrue on the face value of the tax lien certificate at the monthly rate established by the winning bid at the tax lien auction. If the tax lien certificate is issued in favor of the political subdivision, interest shall accrue on the face value of the tax lien certificate at the rate of one percent per month. In both cases, interest shall be calculated on a noncompounding basis.

            Acts 2008, No. 819, §1, eff. Jan. 1, 2009; Acts 2012, No. 836, §1; Acts 2024, No. 774, §1, eff. Jan. 1, 2026; Acts 2025, No. 411, §1, eff. Jan. 1, 2026.