Refund of decades old unconstitutional Orleans Parish property tax penalties

This update highlights recent developments affecting commercial property taxation in Louisiana. It reflects analysis prepared by an APTC member firm based on conditions at the time of publication.

In Monahan v. City of New Orleans, No. 2025-CA-0757 (La. App. 4 Cir. Sept. 10, 2026), the Louisiana Fourth Circuit Court of Appeal affirmed a district court order granting a writ of mandamus compelling the City of New Orleans's Director of Finance (the collector of Orleans Parish property taxes) to pay an approximately $8 million dollar judgment for unconstitutional property tax penalties. The late-payment and collection penalties on delinquent ad valorem taxes were imposed by a 1998 city ordinance, which the Louisiana Supreme Court declared unconstitutional in 2008. After a certified class obtained a final judgment in 2024 ordering refunds, the City refused to pay on the basis that under La. Const. art. XII, sec. 10(C) judgments against a political subdivision are payable only from funds appropriated for that purpose. The appellate court held that La. Const. art. VII, sec. 3(A), which guarantees “a complete and adequate remedy for the prompt recovery of an illegal tax,” as reinforced by La. Const. art. V, sec. 35, provides a specific constitutional exception to the general appropriation requirements, thereby making payment a ministerial duty rather than a discretionary one. The matter was remanded for the district court to establish a reasonable payment schedule.

Angela Adolph
Kean Miller
Member Firm, American Property Tax Counsel