Show Duchesne County Wins Decision onCourt on onCourt onCourt Court Case Involving Thousands Of Dollars of Delinquent Taxes State a e Must Pay Taxes On Foreclosed FOl Farms Fat Judge Turner TUl-nel- Decrees ees County Attorn Attorney y L L. A. A Hollers Hollenbeck c beck Successfully Defends Injunction Case Against Sale Of Farms On Auditors Auditor's Deeds What has been termed th the most important case ever to have been been tried in Duchesne County was decided In the county's favor last Tuesday by an opinion rendered by Judge Abe W. W Turner The rhe case designated on the as aa No 1752 State of Utah vs vs Duchesne county concerns the thc collection of delinquent taxes b by the county on farm land deeded by p the original owner to the State Stale Land Board in satisfaction of an unpaid mortgage The f favorable decision allows the county to collect the taxes or orsell orsell orsell sell the land on Auditors Auditor's tax deed as provided by law which means that if the decision stands the state will undoubtedly pay the delinquent delinquent de de- de- de taxes on all such farms throughout the state in order t to protect its interest in them There are acres of Sand land Sandin landin andin in Duchesne county on which the State Land Board had foreclosed all of wl which ch are affected by the decision It has been roughly estimated estimated esti esti- mated that delinquent taxes on these lands might approximate There are over ove acres of such land in thie tIre entire state scattered through the various various various vari vari- ous counties Credit Goes To Hollenbeck t Credit for wim winning ng the case goes to County Attorney L L. A. A Hollenbeck Hollenbeck Hollenbeck Hollen Hollen- beck who has long held that such lands could not be withdrawn from taxation and to the county commissioners ionel's for tor ordering him to proceed in defense of the cases Because of opinions of the Attorney Attorney Attorney At At- torney General and decisions from the Supreme Courts of Idaho New Mexico and Oklahoma that the lands are not taxable other counties counties counties coun coun- ties have failed to defend similar similar similar simi simi- lar suits entered in every county in the state by the Land Board The case In question one of six entered against the county last May involves the acre farm of Robert Krebs on which prior to the year 1936 the state through the State Land Board loaned a large sum of money secured by a mortgage on the farm The moneys moneys moneys mon mon- eys loaned were part of the proceeds proceeds pro pro- proceeds of the sale of school lands granted to the State of Utah by bythe bythe bythe the United States Government with the m mandate that the lands Continued on page 8 DUCHESNE COUNTY WINS VINS IMPORTANT COURT CASE Continued from page 1 be sold and the proceeds be consIdered considered considered con con- a permanent school fund the interest thereof only to be used used used us us- ed for the operation of or schools Robert Krebs failed to meet the payments and conditions of the note and mortgage and on April 1936 in consideration of the cancellation of the note executed and delivered to the state a war- war renty deed to the property Restraining Order Signed On April 10 1937 the County Auditor executed and delivered an auditors auditor's deed to the property Inconsideration in inconsIderation inconsideration consideration of taxes theretofore levied against the property The property was advertised for sale with other properties gone to Auditors Auditor's tax deeds for sale on the day of May 1937 with the object of selling the property to collect the delinquent taxes On May prior to the sale the State through the State Land Board entered a complaint against a- a g the county commissioners and on May a temporary re restraining restraining restraining re- re straining order was signed by Judge Turner prohibiting the county commissioners from selling selling selling sell sell- ing the property as advertised The chief contention of the state was that the land could not be taxed or sold for taxes because It had become state property and was subject to exemption Involves Square 1 At the order of the county commissioners commissioners com corn missioners Mr Hollenbeck filed a demurrer to the complaint on the grounds of insufficient cause for I action In his is answer answer to the complaint corn com com I plaint he contended among other things That the said State State I Land Board in its efforts to collect col- col cOI 1 lect the money it so loaned to said Robert obert Krebs and arid others has I withdrawn and is attempting to withdraw and is refusing to pay taxes and withdrawing from taxation taxation tax tax- tion more than aCres of land in Duchesne county Utah Utah Utah- farm arm lands lands and and has wi withdrawn or is 18 attempting to withdraw 86 acres of standard farm farmlands farmlands farmlands lands of the State of Utah being about square miles of taxable lands ands of the State of Utah because because because be be- cause of foreclosure of loans on farm property from the school funds as alleged in the said com corn plaint Huffaker Represents State S. S D. D Huffaker Assistant Attorney Attorney Attorney At At- torney General representing the state pre presented his arguments on the case which were rather brief and which were b based baaed ed mainly on the Supreme court decisions of the neighboring states above men men- Mr Hollenbeck took over 2 and one-half one hours in presenting his arguments p presenting enting all the facts he the had gleaned from years of study of the problem His able presentation of the case for which he tie was later highly complimented by Judge Turner proved the deciding deciding deciding de de- de- de factor in the decision During the rendition of the decision decision decision de de- de- de Judge Turner made the following following fol fat lowing pertinent statement That the State Land Board nor any other body of state agency created created created creat creat- ed by the State legislature can cannot cannot cannot not take title to land in the name of the State in a case similar to this so as to defeat the tax lien held by this county Again he stated that the right of the State the county and th the school district to assess levy and collect taxes is a paramount right guaranteed by the constitution ot the State of Utah and that in my opinion the statute exempting the state or county property from taxation does not give the State of Utah a superior right to that of the county in the matter of such exemption and further that in the opinion of the court the state the county and the school district properties which are by bylaw bylaw bylaw law exempt must be those properties properties properties prop prop- taken for the use of the state or for state purposes or county purposes and not for conversion conversion conversion con con- version of title to then be resold so as to replenish the fund with cash May Appeal Case The Judge sustained the county's county's county's coun coun- tys ty's demurrer which means that the complaint does not st state te a cause of action against Duchesne county The only recourse the State now has is to appeal the case to the State Supreme court because there is Insufficient other evidence which could be brought in to make an amended complaint worth while There is little doubt in the minds of those familiar with the case that the State will appeal it and that likewise the county will wm carry its defense through to toa toa toa a final inal decision Mr Hollenbeck feels confident that he can win the case in the Supreme Court |