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 | Page 2 of 3 | Louisiana Tax Sale Lawyers

Q: DEALING WITH OTHER TAX SALE PURCHASERS

It is possible there is or will be an earlier tax sale, another city/parish tax sale from the same year, and/or a later tax sale of the tax sale property you just purchased. You may want to redeem the other tax sale, buy out the other tax sale purchaser’s interest, or sell your interest to the other tax sale purchaser. Louisiana Tax Sale Lawyers can explain the advantages and disadvantages of different strategies, help you choose the strategy that is best for you, and help you determine the best price to pay or accept to buy or sell a tax sale certificate.

Q: DO YOU HAVE TO PAY LATER YEARS' TAXES?

The law says later years’ taxes shall be “ assessed to and paid by the tax sale purchaser” until the property is redeemed. The primary risk of not paying later years’ taxes is the property may be sold at a later tax sale. If that happens, you will have the right to redeem or annul the later tax sale. There is no “best” strategy. Louisiana Tax Sale Lawyers can help you weigh the benefits and risks of different strategies.

Q: WHAT HAPPENS IF A TAX SALE PROPERTY IS SUBJECT TO BOTH CITY AND PARISH TAXES?

Properties subject to city and parish taxes may be sold at separate city and parish tax sales in the same year. When that happens, the city tax sale will be subject to the parish tax sale. Louisiana Tax Sale Lawyers can explain the risks and rewards of investing in those parishes and suggest strategies for protecting your investment.

Q: WHAT HAPPENS AFTER THE TAX SALE?

Payment is required at the time of the tax sale or a few days later. Some auctions require advance deposits or proof of funds. If you do not pay, you may be banned from future tax sales. A few weeks after the tax sale you should receive a tax sale certificate. The tax debtor and other interested parties (such as mortgagees or lienholders) have three years (18 months for blighted/abandoned properties) to redeem the tax sale. The redemption period starts on the day the tax sale certificate is recorded in the conveyance records.

REDEMPTIONS

WHAT DOES “DULY NOTIFIED” MEAN?

DEALING WITH OTHER TAX SALE PURCHASERS

DO YOU HAVE TO PAY LATER YEARS’ TAXES?

WHAT HAPPENS IF A TAX SALE PROPERTY IS SUBJECT TO BOTH CITY AND PARISH TAXES?

WHAT HAPPENS AFTER THE TAX SALE?

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