Louisiana Supreme Court Clarifies Scope Of Delinquent Property Taxes In Tax Sale Redemption

On March 6, 2026, the Louisiana Supreme Court issued a decision addressing the treatment of delinquent property taxes in tax sales and redemption calculations in Esplanade Mall Realty Holdings, LLC v. Lopinto. The Court reversed a trial court ruling that had declared a state tax statute unconstitutional and instead resolved the dispute based on statutory interpretation. The decision provides guidance for property owners, tax collectors, and investors regarding the scope of amounts that may be included in a tax sale price and the resulting redemption amount.

The case arose from unpaid 1992 ad valorem taxes assessed on property located at the former Macy's parcel at Esplanade Mall in Kenner, Louisiana. The property owner argued that those taxes could no longer be collected through a later tax sale because Louisiana law prohibits conducting a tax sale for taxes more than three years old under La. R.S. 47:2131. After the property later became subject to a 2020 tax sale for unpaid 2019 taxes, the Jefferson Parish Sheriff included the earlier 1992 taxes, interest, and costs as part of the tax sale price. The owner sought a declaration that those decades-old charges could not be included in the tax sale or redemption price.

The trial court agreed with the taxpayer's position and held that the statutory three-year limitation conflicted with provisions of the Louisiana Constitution governing property taxes. Because the trial court declared the statute unconstitutional, the case came directly before the Louisiana Supreme Court on appeal. The Supreme Court reversed the lower court and declined to reach the constitutional question. Applying the doctrine of constitutional avoidance, the Court held that the dispute could be resolved through interpretation of the governing tax statutes.

The Court concluded that the sheriff properly included the earlier tax obligations in the tax sale price. Under the statutory scheme in effect at the time of the sale, the “price” of a tax sale was required to include all “statutory impositions,” defined broadly to include ad valorem taxes and related charges appearing on the tax bill. Because the statutes did not exclude older delinquent taxes from that definition, the Court held that the earlier taxes, interest, and costs could be included in the tax sale price even though a tax sale could not be conducted solely to collect those older taxes.

The Court also rejected the taxpayer's argument that the redemption price should exclude the older tax obligations. Under the statutory language governing redemption at the time of the sale, the payment required to redeem the property likewise included all statutory impositions. As a result, the Court denied the requested declaratory relief and remanded the matter to the trial court to calculate the proper redemption amount.

While ruling in favor of the tax collector under the prior statutory regime, the Court noted that the Louisiana Legislature has since addressed the issue. Amendments effective January 1, 2026 now expressly prohibit including delinquent charges more than three years old in the sale price of a tax lien auction. The Court observed that these changes demonstrate the legislature's ability to address perceived inequities in the earlier statutory scheme.

The decision clarifies that under the pre-2026 tax sale framework, older delinquent taxes could still be incorporated into the price and redemption amount of a tax sale triggered by more recent unpaid taxes. Property owners therefore faced the risk that failure to pay current taxes could effectively revive decades-old obligations tied to the property.

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