La. Revenue and Taxation § 47:2134

Current with operative changes from the 2024 Third Special Legislative Session

Section 47:2134 - [See Note] Suits to recover statutory impositions paid under protest

A. No court of this state shall issue any process to restrain, or render any decision that has the effect of impeding, the collection of an ad valorem tax imposed by any political subdivision, under authority granted to it by the legislature or by the constitution.

(1)

(a) A taxpayer challenging the correctness of an assessment under R.S. 47:1856, 1857, or 1998 shall timely pay the disputed amount of tax due under protest to the officer or officers designated by law for the collection of this tax or timely file a rule to set bond or other security pursuant to Subsection F of this Section. The portion of the taxes that is paid by the taxpayer to the collecting officer or officers that is neither in dispute nor the subject of a suit contesting the correctness of the assessment shall not be made subject to the protest. The taxpayer shall submit separate payments for the disputed amount of tax due and the amount that is not in dispute and not subject to the protest.

(b) Paying under protest or filing a rule to set bond or other security shall be considered timely if the payment is made or the rule is filed within the deadline to appeal to the Board of Tax Appeals or district court pursuant to R.S. 47:1856, 1857, or 1998.

(2)

(a) If at the time of the payment of the disputed taxes under protest the taxpayer has previously filed a correctness challenge suit under the provisions of R.S. 47:1856, 1857, or 1998, such taxpayer shall give notice of the suit to the collecting officer or officers in the parish or parishes in which the property is located. This notice shall be sufficient to cause the collecting officer or officers to further hold the amount paid under protest segregated pending the outcome of the suit.

(b) If at the time of the payment of the protested tax, a correctness challenge suit is not already pending under the provisions of R.S. 47:1856, 1857, or 1998, then a suit seeking recovery of the protested payment need not be filed until thirty days from the date a final decision is rendered by the Louisiana Tax Commission under either R.S. 47:1856, 1857, or 1998. The taxpayer making the payment under protest under these circumstances must advise the collecting officer or officers in the parish or parishes in which the property is located at the time of the protest payment that the protest payment is in connection with a correctness challenge and must promptly notify the collecting officer or officers when a final decision is rendered by the Louisiana Tax Commission under either R.S. 47:1856, 1857, or 1998. The collecting officer or officers shall continue to segregate and hold the protested amount in escrow until a timely correctness challenge suit is filed.

(c) If a suit is timely filed contesting the correctness of the assessment pursuant to R.S. 47:1856, 1857, or 1998 and seeking the recovery of the tax paid under protest, then that portion of the taxes paid that are in dispute shall be deemed as paid under protest, and that amount shall be segregated and shall be further held pending the outcome of the suit.

(3)

(a) In a correctness challenge suit under either R.S. 47:1856 or 1857 the officer or officers designated for the collection of taxes in the parish or parishes in which the property is located and the Louisiana Tax Commission shall be the sole necessary and proper party defendants in any such suit.

(b) The officer or officers designated for the collection of taxes in the parish or parishes in which the property is located and the assessor or assessors for the parish or district, or parishes or districts, in which the property is located shall be the sole necessary and proper party defendants in a correctness challenge action under R.S. 47:1989, 1992, or 1998.

(4) If the taxpayer prevails, the collecting officer or officers shall refund the amount to the taxpayer with interest at the actual rate earned on the money paid under protest in the escrow account during the period from the date such funds were received by the collecting officer or officers to the date of the refund. If the taxpayer does not prevail, the taxpayer shall be liable for the additional taxes together with interest at the rate set forth above during the period from the date the taxes were due under R.S. 47:2127 until the date the taxes are paid, or in the case of taxes paid under protest, until the date of the payment under protest.

(1) A person resisting the payment of an amount of ad valorem tax due or the enforcement of a provision of the ad valorem tax law and thereby intending to maintain a legality challenge shall timely pay the disputed amount due under protest to the officer or officers designated by law for the collection of the tax and shall give such officer or officers, notice at the time of payment of his intention to file suit for the recovery of the protested tax. The portion of the taxes that is paid by the taxpayer to the collecting officer or officers that is neither in dispute nor the subject of a suit contesting the legality of the assessment shall not be made subject to the protest. The taxpayer shall submit separate payments for the disputed amount of tax due and the amount that is not in dispute and not subject to the protest. Upon receipt of a notice, the protested amount shall be segregated and held by the collecting officer for a period of thirty days.

(2) A legality challenge suit must be filed within thirty days from the date of the protested payment. If a suit is timely filed contesting the legality of the tax or the enforcement of a provision of the tax law and seeking recovery of the tax, then that portion of the taxes paid that are in dispute shall be further deemed as paid under protest, and that amount shall be segregated and shall be further held pending the outcome of the suit. The portion of the taxes that is paid by the taxpayer to the collecting officer or officers that is neither in dispute nor the subject of a suit contesting the legality of the tax shall not be made subject to the protest.

(3) In any such legality challenge suit, service of process upon the officer or officers responsible for collecting the tax, the assessor or assessors for the parish or district, or parishes or districts in which the property is located, and the Louisiana Tax Commission shall be sufficient service, and these parties shall be the sole necessary and proper party defendants in any such suit.

(4) If the taxpayer prevails, the collecting officer or officers shall refund such amount to the taxpayer with interest at the actual rate earned on the money paid under protest in the escrow account during the period from the date such funds were received by the collecting officer or officers to the date of the refund. If the taxpayer does not prevail, the taxpayer shall be liable for the additional taxes together with interest at the rate set forth above during the period from the date the taxes were due under R.S. 47:2127 until the date the taxes are paid, or in the case of taxes paid under protest, until the date of the payment under protest.

(1) The right to sue for recovery of a tax paid under protest as provided in this Section shall afford a legal remedy and right of action in the Board of Tax Appeals or any state or federal court having jurisdiction of the parties and subject matter for a full and complete adjudication of all questions arising in connection with a correctness challenge or the enforcement of the rights respecting the legality of any tax accrued or accruing or the method of enforcement thereof.

(2) A legality challenge as provided for in Subsection C of this Section may be brought pursuant to Paragraph (1) of this Subsection or by petition for recovery of a tax paid under protest before the Board of Tax Appeals, which shall provide a legal remedy and right of action for a full and complete adjudication of all questions arising in connection with the tax.

(3) The right to sue for recovery of a tax paid under protest or other security as provided in this Section shall afford a legal remedy and right of action at law in the Board of Tax Appeals or state or federal courts where any tax or the collection thereof is claimed to be an unlawful burden upon interstate commerce or in violation of any act of the Congress of the United States, the Constitution of the United States, or the Constitution of Louisiana.

(4) The portion of the taxes which is paid by the taxpayer to the collecting officer or officers that is neither in dispute nor the subject of such suit shall not be made subject to the protest.

(1) Upon request of a taxpayer and upon proper showing by the taxpayer that the principle of law involved in an additional assessment is already pending before the Board of Tax Appeals or the courts for judicial determination, the taxpayer, upon agreement to abide by the pending decision of the Board of Tax Appeals or the courts, may pay the additional assessment under protest pursuant to Subsection B or C of this Section or file a rule to set bond or other security pursuant to Subsection F of this Section but need not file an additional suit. In such cases, the tax paid under protest or other security shall be segregated and held by the collecting officer or officers until the question of law involved has been determined by the courts, the Board of Tax Appeals, or finally decided by the courts on appeal, and shall then be disposed of as provided in the final decision of the Board of Tax Appeals or courts, as applicable.

(2) If the taxpayer prevails, the officer or officers shall refund such amount to the taxpayer with interest at the actual rate earned on the money paid under protest in the escrow account during the period from the date such funds were received by the officer or officers to the date of the refund. If the taxpayer does not prevail, the taxpayer shall be liable for the additional taxes together with interest at the rate set forth above during the period from the date the taxes were due under R.S. 47:2127 until the date the taxes are paid, or in the case of taxes paid under protest, until the date of the payment under protest.

(1) Notwithstanding any provision of law to the contrary, any taxpayer challenging the correctness or legality of any assessment whose remedy requires making a payment under protest pursuant to Subsection B or C of this Section may in the alternative comply with the provisions of this Subsection rather than making a payment under protest.

(2)

(a)

(i) On or before the date on which the taxes are due, the taxpayer challenging the legality of any assessment may file with the court or the Board of Tax Appeals a rule to set bond or other security, which shall be set for hearing within thirty days of the filing of the rule to set bond or other security, and shall attach to the petition evidence of the taxpayer's ability to post bond or other security.

(ii) Within the deadline to appeal to the Board of Tax Appeals or district court pursuant to R.S. 47:1856, 1857, or 1998, the taxpayer challenging the correctness of any assessment may file with the court or the Board of Tax Appeals a rule to set bond or other security, which shall be set for hearing within thirty days of the filing of the rule to set bond or other security, and shall attach to the petition evidence of the taxpayer's ability to post bond or other security.

(b) The term "other security" as used in this Subsection shall include but not be limited to a pledge, collateral assignment, lien, mortgage, factoring of accounts receivable, or other encumbrance of assets.

(3) The court or the Board of Tax Appeals may order either the posting of commercial bond or other security in an amount determined by the court or the board to be reasonable security for the amount of unpaid taxes and interest demanded in the assessment or may order the taxpayer to make a payment under protest in an amount determined in its discretion to be reasonable security considering the amount of unpaid taxes and interest. The court or board may order that a portion of the unpaid taxes and interest be paid under protest and the balance secured by the posting of a bond or other security as provided in this Subsection.

(4) The posting of a bond or other security or the payment under protest shall be made no later than thirty days after the mailing of the notice of the decision of the court or the Board of Tax Appeals authorizing the posting of bond or other security or requiring that a payment under protest be made.

(5) If the taxpayer timely files the suit or any petition or rule referred to in this Subsection, no collection action shall be taken in connection with the assessment of taxes and interest that are the subject of the taxpayer's cause of action, unless the taxpayer fails to post bond or other security or make the payment under protest required by the court or board. The collector shall be permitted to file a reconventional demand against the taxpayer in the cause of action. A collector may procure an appraisal or conduct discovery concerning the value and validity of other security, as that term is described in Subparagraph (2)(b) of this Subsection, offered prior to the date for filing the collector's response or opposition to a rule set for hearing under this Subsection.

(6) To the extent not inconsistent with this Subsection, the nature and amount of the bond or security and the procedures for posting bond or providing other security shall be consistent with the provisions for providing security in connection with a suspensive appeal under the Code of Civil Procedure.

(7) This Subsection shall not apply to amounts of tax that are not in dispute and are not the subject of a correctness or legality challenge.

La. Revenue and Taxation § 47:2134

Acts 2008, No. 819, §1, eff. Jan. 1, 2009; Acts 2009, No. 511, §1; Acts 2014, No. 304, §1; Acts 2021, No. 343, §1, eff. Jan. 1, 2022; Acts 2023, No. 284, §1.

Amended by Acts 2023, No. 284,s. 1, eff. 8/1/2023.

Amended by Acts 2021, No. 343,s. 1, eff. 1/1/2022.

Amended by Acts 2014, No. 304,s. 1, eff. 8/1/2014.

Acts 2008, No. 819, §1, eff. 1/1/2009; Acts 2009, No. 511, §1.

This section is set out more than once due to postponed, multiple, or conflicting amendments.