Show Salt Lake Lale r Tax fax D Decision Conflicts With One Rendered By Abe Turner Till Two Opposing Decisions Affecting The Collection Of Taxes By Counties t I May fay Go Before The Supreme Court Salt Lake County I Loses Case To State Land Board Salt Lake county was prohibited prohibit prohibit- ed last Tuesday in a district court decision from taking title through a tax deed dee to property acquired by the state land board in default of a mortgage by a borrower from the board even before the board took over the property Judge James W. W McKinney handed down the written decisIon decision ion in a suit sult brought by the land board against Salt Lake county ty one of approximately 60 GO similar actions pending In the state in n which counties will seek to acquire acquire acquire ac ac- ac- ac quire property on like ilke grounds The decision is in direct conflict with that handed down in Duchesne Duchesne Du- Du chesne Nov No 1937 o on one of the cases tried hied here before Judge Abe Turner Judge Turner Quoted In rendering his decision here fr J Judge Turner after listening to the argument as presented by I County attorney L. L A. A Hollenbeck Hollenbeck Hollenbeck Hollen- Hollen beck said That the State Land Board nor an any other body o of state agency created by bythe the State legislature can not take title to toland toland toland land in the name of the State Ina Ina in ina a case similar to this so as to defeat the tax lien held by this thi county Again he stated that the right of the State the county and the school district to assess lev levy and collect taxes is a paramount right guaranteed by the constitution constitution constitution of the State of Utah and andin 11 JI in my opinion the statute exempting exempting exempt exempt- p state property ing the or county from taxation does not give the State of Utah a superior right to that that- r nf f th the In th the matter J of such exemption and further that in the opinion of the court the state the county and the school district properties which are by law exempt must be those properties taken for the use of the state for state purposes and not for conversion of title to then b be resold so as to replenish the fund with cash Judge McKinney Quoted Judge McKinney in rendering his decision on the Salt Lake county case said he was Continued On Page 5 3 S. S L. L Tax Tat Decision Conflicts Vi With th One Rendered Here Continued From Page One ed that the state having acquired ed land which immediately became became became be be- came public property cannot be required to pay poy either past or I Ii i resent present taxes thereon I think this would be so even evenin evenin evenin in the absence of any constitutional constitutional constitutional exemption at least where such land is devoted to public use the decision read Here by provision of the state constitution constitution constitution tion we have an express exemption exemption exemption tion from taxation of state-owned state property without any qualifications qualifications whatever He also ruled that money lenton lenton lent lenton on the property in question was derived from a trust fund created created created creat creat- ed by sale of school land grants from the United States and that that fund cannot be used to pay taxes When U the state forecloses on these mortgages or when it acquires acquires acquires ac ac- ac- ac quires title by deed as in this case it holds the lands thus taken taken taken tak tak- en for sale in behalf of such funds he e explained In both cases it was the states state's contention that preexisting taxes ceased to exist as soon as the state acquired the property while the counties claimed the taxes remained remained remained re re- re- re a valid lien against the property and that the counties held title through Auditors Auditor's tax deeds Duchesne Co Case Caso Appealed Notice was received Wednesday by Mr Hollenbeck that the state has filed its bill of exceptions with the Supreme Court thereby appealing the Duchesne county case to that body for a decision The case probably will go before the Supreme Court in the very near future Mr Hollenbeck said Following ving the decision on the Salt Lake county case it was stated there that that case would probably be appealed but if the Duchesne county case goes to trial first the decision r rendered on it will undoubtedly determine the further action on the S Spilt Lake case |