§2134. 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 statutory impositions imposed by any political
subdivision, under authority granted to it by the legislature or by the constitution.
B.
(1)(a) A taxpayer challenging the correctness of an assessment under R.S. 47:1856,
1857, or 1998 or other statutory impositions shall timely pay the disputed amount due under
protest to the officer or officers designated by law for the collection of the statutory
impositions or timely file a rule to set bond or other security pursuant to Subsection F of this
Section. The portion of the statutory impositions paid by the taxpayer to the collecting officer
or of
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§2134. 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 statutory impositions imposed by any political
subdivision, under authority granted to it by the legislature or by the constitution.
B.(1)(a) A taxpayer challenging the correctness of an assessment under R.S. 47:1856,
1857, or 1998 or other statutory impositions shall timely pay the disputed amount due under
protest to the officer or officers designated by law for the collection of the statutory
impositions or timely file a rule to set bond or other security pursuant to Subsection F of this
Section. The portion of the statutory impositions 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 statutory impositions under
protest, the taxpayer has previously brought a correctness challenge action under the
provisions of R.S. 47:1856, 1857, or 1998 or brought an action disputing other statutory
impositions, such taxpayer shall give notice of the action 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 action.
(b) If, at the time of the payment of the protested statutory impositions, the taxpayer
has not previously brought a correctness challenge action under the provisions of R.S.
47:1856, 1857, or 1998 or other action challenging the validity or correctness of other
statutory impositions, then an action seeking recovery of the protested payment need not be
brought until thirty days from the date that a final decision is rendered by the commission
under either R.S. 47:1856, 1857, or 1998. The taxpayer making the payment under protest
under these circumstances shall 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 shall promptly notify the
collecting officer or officers when a final decision is rendered by the commission under
either R.S. 47:1856, 1857, or 1998 or by a court of competent jurisdiction in an action
challenging the validity or correctness of other statutory impositions. The collecting officer
or officers shall continue to segregate and hold the protested amount in escrow until a timely
correctness challenge action is brought.
(c) If a taxpayer timely seeks recovery of statutory impositions in an action contesting
the correctness of the assessment pursuant to R.S. 47:1856, 1857, or 1998 or in an action
challenging the validity or correctness of other statutory impositions, then that portion of the
statutory impositions paid that are in dispute shall be deemed as paid under protest, and that
amount shall be segregated and shall be further held pending final judgment.
(3)(a) In a correctness challenge action 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 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 that 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 statutory impositions together with interest at the
rate set forth in R.S. 47:2127 during the period from the date that the statutory impositions
were due under R.S. 47:2127 until the date that the statutory impositions are paid, or in the
case of statutory impositions paid under protest, until the date of the payment under protest.
C.(1) A person resisting the payment of an amount of statutory impositions due or the
enforcement of a provision of the law governing the assessment and collection of statutory
impositions 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 statutory impositions and, at the time of payment, shall give such officer or
officers notice of his intention to bring an action for the recovery of the protested amount.
The portion of the statutory impositions that is paid by the taxpayer to the collecting officer
or officers that is neither in dispute nor the subject of an action contesting the legality of the
assessment shall not be made subject to the protest. The taxpayer shall submit separate
payments for the disputed amount 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 action shall be brought no later than thirty days from the date
of the protested payment. If an action is timely filed contesting the legality of the statutory
impositions or the enforcement of a provision of the tax law and seeking recovery of the
statutory impositions, then that portion of the statutory impositions paid that is 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 action. The portion of the statutory impositions
that is paid by the taxpayer to the collecting officer or officers that is neither in dispute nor
the subject of an action contesting the legality of the statutory impositions shall not be made
subject to the protest.
(3) In any such legality challenge action, service of process upon the officer or
officers responsible for collecting the statutory impositions, the assessor or assessors for the
parish or district, or parishes or districts in which the property is located, and the commission
shall be sufficient service, and these parties shall be the sole necessary and proper party
defendants.
(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 that 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 statutory impositions together with interest at the
rate set forth in R.S. 47:2127 during the period from the date that the statutory impositions
were due under R.S. 47:2127 until the date that the statutory impositions are paid, or in the
case of statutory impositions paid under protest, until the date of the payment under protest.
D.(1) The right to sue for recovery of statutory impositions 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 statutory impositions
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 statutory impositions 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 statutory impositions that 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.
E.(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 bring an
additional action. In such cases, the amount 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 that 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 statutory impositions together with interest at the rate set forth in R.S.
47:2127 during the period from the date that the statutory impositions were due under R.S.
47:2127 until the date that the statutory impositions are paid, or in the case of statutory
impositions paid under protest, until the date of the payment under protest.
F.(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 statutory impositions 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 and give notice, at that time, of the filing of
the rule to the collecting officer or officers in the parish or parishes in which the property is
located. The rule 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 statutory impositions 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
statutory impositions and interest. The court or board may order that a portion of the unpaid
statutory impositions 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 statutory
impositions 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 statutory impositions that are not
in dispute and are not the subject of a correctness or legality challenge.