Ad valorem taxes are real obligations or in rem obligations on the land itself,1 which means that a client cannot not be sued personally for delinquent real estate taxes. Rather, a lien on the property is sold at a tax sale subject to a right of redemption. If no person bids on the property at tax sale, the tax lien will be adjudicated to the taxing authority.
Tax sales in Louisiana are authorized by Section 25 of Article VII of the Louisiana Constitution. In 2008, the Louisiana Legislature comprehensively amended and restated the law governing the payment and collection of property taxes, tax sales, and redemptions.2 Under the reforms, tax sales switched from a “tax sale deed” to a “tax sale title.”3 The tax sale title is sold as a tax sale certificate, which is redeemable for three years (or eighteen months if the property is blighted) from the date of tax sale certificate recordation. Redemption is made by making a combined payment of a 5% penalty plus a simple interest rate of 1% per month.