The redemption price is the tax sale price plus a 5% penalty and 1% interest per month on the tax sale price. If you paid later years taxes, the redemption price includes a 5% penalty and 1% interest on those amounts. The redemption price includes taxes owed to the tax collector, but those amounts do not affect you. The redemption price is calculated by the tax collector and paid to the tax collector, usually without input from the tax sale purchaser. While the tax collector should know a tax payment was made, they may not know you made the payment. Keep copies of receipts and canceled checks for all tax payments made after the tax sale. Some tax collectors want to see copies before they issue the redemption check to you. The redemption price should include taxes paid to both city and parish tax collectors. Notify the tax collector who issued your tax sale certificate of any payments made to the other tax collector. They may not automatically include them in the redemption price. The redemption price should include redemptions of other tax sales, but the law is not clear on this issue. Louisiana Tax Sale Lawyers recommends buying out other tax sale purchasers rather than redeeming their tax sales. There are three advantages. First, a tax sale certificate you buy will continue to accrue interest. Second, a person seeking to redeem or annul your tax sale will also have to redeem or annul the other tax sale. Third, you don’t have to worry about the price you paid to redeem another tax sale not being included in the redemption price for your tax sale. The redemption price should include any “statutory impositions” you paid in addition to taxes. Statutory impositions are any a mounts included on the tax bill, including security district fees, homeowner’s association dues, and code enforcement judgments. As code enforcement judgments can exceed the amount of taxes owed, whether you should or should not pay those amounts is not an easy question to answer.

FAQs Archive | Louisiana Tax Sale Lawyers

Q: WILL YOU BE ABLE TO GET TITLE INSURANCE?

Before you can sell or borrow money to renovate a tax sale property, you will need title insurance. A judgment saying the tax debtor was “duly notified” and you are the owner may not be enough. Most title insurance companies want you to show that a very diligent effort was made to identify, locate, and notify all interested persons. At Louisiana Tax Sale Lawyers , our objective is to do whatever is necessary to allow you to obtain title insurance. In some cases, however, it can be difficult or impossible to meet the title company’s standards. In those cases, a title policy may be available (at a substantially higher cost) from a company that specializes in insuring tax sale properties.

WHY DO YOU NEED A TAX SALE LAWYER?

ASSESSMENT APPEALS / LOUISIANA TAX COMMISSION APPEALS

CODE ENFORCEMENT ISSUES

WILL YOU BE ABLE TO GET TITLE INSURANCE?

WHAT HAPPENS WHEN A TAX SALE IS NOT REDEEMED?

REDEMPTIONS

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