The city of New Orleans could owe tens of millions of dollars to delinquent taxpayers if it loses its case before the state supreme court today. About ten years ago, the city went after property owners who hadn't paid taxes by hiring a collection agency to get the money, and assess penalties.
"There's no constitutional prohibition against the city enforcing the ad-valorem tax by assessing a penalty on delinquent payers," said Phil Wittman, representing the collectors, who are also defendants in the suit.
Phil Wittman talks about the city's case:
However, the plaintiffs successfully argued in trial and before the appeals court that the state constitution specifies tax sales as the only way to collect back taxes, not through collections agencies.
"They passed, I would call it a renegade ordinance," Fransen said.
Remy Fransen talks about the plaintiffs' case:
Remy Fransen says the city must repay the taxpayers it has collected from, and go back and do the whole thing over again.