Could Madison Parish waive utility fees and use tax-adjudicated property sales to pay a judgment?

Plain-English summary

Madison Parish asked whether it could exempt residents from water, sewer, and garbage user fees and whether it could sell tax-adjudicated property to satisfy a civil judgment. In 2000, the attorney general's office said free service would generally violate the state constitution's ban on donations of public resources. It recognized an exception for a formal social-welfare program limited to needy people under objective criteria. It also noted that no fee was owed when the service was not provided.

The opinion referred to an earlier opinion allowing certain credits for water losses caused on the public provider's side or by the provider, and sewer credits for qualifying customer-side leaks that did not enter the sewer system. On the property question, it said the parish could sell adjudicated property after the then-applicable three-year redemption period, apply sale proceeds to the judgment, and amend its budget to show the revenue and expenditure.

Currency note

This opinion was issued in 2000. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Madison Parish officials at the time

The office said a general exemption from fees for services actually provided would be an impermissible public benefit. A formal aid program based on objective need could qualify under the constitution's social-welfare provision. It also described conditions from an earlier opinion for particular water and sewer credits.

Residents at the time

Residents who received no service owed no charge for that service under the opinion. The opinion distinguished that from waiving charges for service already provided.

Tax-sale and budget officials at the time

After the redemption period, the parish could sell adjudicated property under the cited sale procedures, use the proceeds toward its civil judgment, and reflect both sides in its budget.

Common questions

Q: Could the parish waive everyone's water, sewer, or garbage fees?
A: The opinion said providing those services without payment generally violated the constitutional ban on donating public resources.

Q: Could needy residents receive a fee exemption?
A: The office said a formally adopted social-welfare program could grant exemptions to people meeting objective criteria for need.

Q: Could tax-adjudicated property be sold to pay the parish's judgment?
A: Yes, after the redemption period expired and following the cited sale procedures; the proceeds could then be applied to the civil judgment.

Background and statutory framework

The opinion cited R.S. 33:3820, R.S. 33:3885, and R.S. 33:4169.1(A)(4) for authority to charge water, sewer, and garbage fees. It analyzed those charges under Article VII, Section 14(A) and (B) of the Louisiana Constitution. For adjudicated property, it quoted R.S. 33:2866 and Article VII, Section 25(B)(1), then referred to the procedures in R.S. 33:2861 through 2876.

Citations and references

• R.S. 33:3820 (water service fees)
• R.S. 33:3885 (sewerage fees)
• R.S. 33:4169.1(A)(4) (garbage collection fees)
• Article VII, Section 14(A) and (B), Louisiana Constitution of 1974 (public-resource restriction and welfare programs)
• R.S. 33:2866 (sale after redemption period)
• Article VII, Section 25(B)(1) (tax-sale redemption)
• City of Lake Charles v. Henning, 414 So. 2nd 331 (La. 1982) (fee regulation)
• Attorney General Opinion No. 99-208 (credits and need-based programs)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/00-0441

Original opinion text

December 5, 2000
OPINION NUMBER 00-441

46-A
Fees and Costs
84
Parishes
88
Police Juries-in General
90
Police Juries-Powers and Functions
159
Taxation-Sale of Land from Delinquent Taxes

Ms. Sanettria R. Glasper R.S. 33:2861, et seq.; 2866, 3820, 3885 and 4169.1(A)

Assistant District Attorney Article VII, Section 25(B) Sixth Judicial District Discusses the circumstances under which the Madison Parish Police Jury can 501 East Green Street exempt its residents from the payment of water, sewerage and garbage collection
P. O. Box 1389
user fees. Also, the Police Jury may sell properties adjudicated to it for taxes after
the three-year period of redemption, and apply the proceeds to an outstanding civil Tallulah, LA 71284-1389 judgment against the Police Jury.

Dear Ms. Glasper:

You have requested an opinion from the Attorney General in your capacity as legal advisor to the Madison Parish Police Jury (Police Jury). You first ask whether the Police Jury has the authority to exempt residents from user and/or service fees for water, sewer and garbage collection services.

As you are aware, the Police Jury has the statutory authority to assess and collect user fees from its residents for water (R.S. 33:3820), sewerage (R.S. 33:3885) and garbage collection [R.S. 33:4169.1(A)(4)].

While states and their political subdivisions are accorded wide latitude in the regulation of their local economies under their police powers, any regulation imposed by the Parish for a user fee must be applied fairly and in a manner reasonably related to the Police Jury’s objective in accordance with due process and equal protection, City of Lake Charles v. Henning, 414 So. 2nd 331 (La. 1982). Mindful of this due process requirement, we have consistently opined that a user fee should not be so excessive as to constitute an illegal tax, and should be applicable to all residences similarly situated. Attorney General Opinion Nos. 94-30, 93-582 and 89-311.

We also direct your attention to Article VII, Section 14(A) and (B) of the Louisiana Constitution of 1974, which provide, in pertinent part, the following:

Page 2

Ms. Sanettria R. Glasper
Assistant District Attorney
Sixth Judicial District
Page: -2-

Section 14. (A) Prohibited Uses. Except as otherwise provided by this constitution, the funds, credit, property or things of value of the state or of any political subdivision shall not be loaned, pledged or donated to or for any person, association, or corporation, public or private….

(B) Authorized Uses. Nothing in this Section shall prevent (1) the use of public funds for programs of social welfare for the aid and support of the needy….

It is the opinion of this office that the receipt of such services without payment of the user fees would constitute a violation of Article VII, Section 14(A). Obviously, if these services are not provided to the residents, there is no obligation to pay for same.

As noted above, Section 14(B) of Article VII, recognizes the use of public funds for programs of social welfare for the aid and support of the needy. While this provision authorizes the granting of exemptions from the payment of these fees, it applies to formal programs adopted by the Police Jury which would assist only those individuals falling within the category of “needy” as measured against objective criteria. Attorney General Opinion No. 99-208.

Opinion Number 99-208 further concluded that a political subdivision could institute a credit policy relating to water usage, but only in those cases where loss occurs on the public entity’s side of the meter, or as a result of damage to the customer’s water pipe(s) was caused by the political subdivision. However, a credit policy could be implemented for the sewerage fee due to water escaping from an undetected leak on the customer’s side of the meter because the escaping water does not run through the political subdivision’s sewerage system, but rather is returned through runoff into the ground water and storm drainage system.

We note from your request that the Police Jury is billing residents for delinquent fees. We recommend that, when doing so, reference be given to the statutory provisions governing prescription, where applicable. Attorney General Opinion No. 84-361.

Your second question relates to the sale of various properties adjudicated for taxes to the Parish of Madison. You specifically ask whether these properties can be sold, with the proceeds being applied to an outstanding civil judgment against the Parish. In answer to your question, I refer you to R.S. 33:2866 and Article VII, Section 25(B)(1), which provide as follows:

§ 2866. Sale after expiration of redemption period

The parish or municipality may, after the expiration of the period fixed by law for the redemption of the adjudicated property, sell the property in the manner and on the terms provided in this Subpart. (Emphasis added.)

Page 3

Ms. Sanettria R. Glasper
Assistant District Attorney
Sixth Judicial District
Page: -3-

§ 25. Tax sales

(B) Redemption. (1) The property sold shall be redeemable for three years after the date of recordation of the tax sale, by paying the price given, including costs, five percent penalty thereon, and interest at the rate of one percent per month until redemption. (Emphasis added.)

As can be gleaned from the above, after the expiration of the three-year period for the redemption of the adjudicated property, the Police Jury may sell the property. Sale of the property should proceed in accordance with the provisions set forth in R.S. 33:2861 through 2876. Once the property has been sold, the proceeds therefrom may be applied to satisfy the outstanding civil judgment against the Police Jury. The budget for the Parish should be amended to reflect the revenues derived from the sale, as well as the expenditure in satisfaction of the judgment.

Questions pertaining to the Parish budget may be directed to the Office of the Legislative Auditor at (225) 339-3800

Trusting this adequately responds to your inquiries, I am

Very truly yours,

RICHARD P. IEYOUB
Attorney General

By:
ROBERT E. HARROUN, III
Assistant Attorney General

RPI/REH,3/sfj

Page 4

SYLLABUS
OPINION NUMBER 00-441

46-A Fees and Costs
84 Parishes
88 Police Juries-in General
90 Police Juries-Powers and Functions
159 Taxation-Sale of Land from Delinquent Taxes

R.S. 33:2861, et seq.; 2866, 3820, 3885 and 4169.1(A)

Article VII, Section 25(B)

Discusses the circumstances under which the Madison Parish Police Jury can exempt its residents from the payment of water, sewerage and garbage collection user fees. Also, the Police Jury may sell properties adjudicated to it for taxes after the three-year period of redemption, and apply the proceeds to an outstanding civil judgment against the Police Jury.

Ms. Sanettria R. Glasper
Assistant District Attorney
Sixth Judicial District
501 East Green Street
P. O. Box 1389
Tallulah, LA 71284-1389

DATE RECEIVED:

DATE RELEASED: December 5, 2000

Robert E. Harroun, III
Assistant Attorney General