NOTE: §71.3.2 eff. Jan. 1, 2026, upon adoption of the Const. Amend. contained in Acts 2024, No. 409. See Acts 2024, No. 738.

§71.3.2. Tax lien property fraud

            A. It is unlawful for any person, in connection with the issuance of a tax sale certificate, tax lien certificate, or tax sale title to the property pursuant to R.S. 47:2132, 2155, or 2161, or in violation of R.S. 47:2158.1 or 2231.1, to knowingly do any of the following:

            (1) Employ a device, scheme, or artifice with intent to defraud the tax debtor.

            (2) Make an untrue statement of material fact with intent to defraud the tax debtor.

            (3) Receive any portion of the monies, funds, credits, assets, securities, or other property of the tax debtor in connection with the purchase of either tax sale property or a delinquent obligation evidenced by a tax lien certificate.

            B.(1) A person who violates the provisions of this Section shall be imprisoned, with or without hard labor, for not more than two years or may be fined not more than five thousand dollars, or both.

            (2) In addition to the penalties provided in Paragraph (1) of this Subsection, a person convicted under the provisions of this Section shall forfeit all rights and claims to possession of the delinquent obligation, tax lien certificate, or tax sale title to the property and shall be ordered to make full restitution to the victim and any other person who has suffered a financial loss as a result of the offense. If a person ordered to make restitution pursuant to this Section is found to be indigent and therefore unable to make restitution in full at the time of conviction, the court shall order a periodic payment plan consistent with the person's financial ability.

            C. For the purposes of this Section:

            (1) "Delinquent obligation" means statutory impositions included in the tax bill that are not paid by the due date, plus interest and costs that may accrue in accordance with law.

            (2) "Person" means a natural or juridical person, including but not limited to a sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, incorporated or unincorporated association, or any other individual or entity.

            (3) "Tax debtor", "tax sale certificate", "tax sale property", and "tax sale title" shall have the same meanings as in R.S. 47:2122.

            D. It is the intent of the legislature to encourage tax debtors to seek legal counsel in order to protect any ownership rights adversely affected by a violation of this Section.

            Acts 2024, No. 738, §§2, 5, See Act.