USA – LOUISIANA Trends and Developments Contributed by: Jeffrey P Good and Susan M Tyler, Jones Walker LLP
Digital asset regulation and foreign investment restrictions
Legal Developments for 2025: Significant Changes Affecting Real Estate Professionals Constitutional amendment on tax sales and property tax structure Louisiana’s approach to tax sales underwent a transformative change with the passage of Constitutional Amendment 4 in December 2024, altering how delinquent property taxes are addressed. This amendment shifts Louisi - ana from a tax sale system to a tax lien system by establishing property taxes as “a lien and privilege on the property assessed in favour of the political subdivision to which taxes and other impositions are owed” . Under the previous system, properties with delin - quent taxes were auctioned at tax sales, with the highest bidder receiving rights to the property if the original owner failed to redeem it within three years. The new constitutional amendment establishes a more structured approach, requir - ing the legislature to implement specific admin - istration procedures for tax sales, including: • interest on delinquent taxes not exceeding 1% per month (non-compounding); • penalties not exceeding 5% of delinquent taxes; • a mandated period during which the lien can - not be enforced; and • formal procedures for claiming excess pro - ceeds from property sales resulting from lien enforcement. While the constitutional amendment has been approved, the specific implementation details are still being developed. Real estate profession - als should monitor these developments close - ly, as they will significantly impact title issues, redemption rights and the overall process for addressing tax-delinquent properties.
In June 2024, Louisiana enacted House Bill 488, known as the “Blockchain Basics Act” (Act 700), which established a comprehensive legal framework for digital assets and cryptocurrency operations within the state. A notable provision of this legislation places limitations on foreign entities from acquiring or maintaining ownership stakes in digital asset mining operations within Louisiana. This legislation aligns with broader efforts to restrict foreign ownership of strate - gic assets, similar to Louisiana’s existing laws prohibiting “foreign adversaries” and “persons connected with foreign adversaries” from acquir - ing immovable property in the state (Louisiana Revised Statutes Section 9:2717.1). For real estate professionals, these develop - ments present both opportunities and compli - ance challenges. Properties suitable for digital asset mining may see increased demand from domestic investors, while those advising foreign clients must consider these new restrictions in their investment strategies. Additionally, the legal recognition of digital assets for transactions may gradually influence property purchase and financing mechanisms, requiring professionals to develop expertise in this emerging area. Conclusion Louisiana’s real estate landscape in 2025 pre - sents both significant challenges and strategic opportunities for industry professionals. Legisla - tive changes, particularly in insurance regulation and tax structure, have created a more stable environment for transactions while introducing new compliance considerations. Major develop - ment projects continue to drive economic activ - ity across multiple sectors, while emerging areas like carbon sequestration present novel legal
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